Description
Wolfe Waves are naturally forming patterns that appear in all financial markets. They represent the market's attempt to return to a fair or balanced price. These patterns can appear in both short-term and long-term timeframes and are known as one of the most reliable reversal patterns. They often come before strong and lasting price moves.
- Provides clear and easy-to-understand trading signals
- Very simple to use
- Fully customizable colors and line sizes
- Shows performance statistics for trade evaluation
- Displays suggested stop-loss and take-profit levels
- Sends alerts by email, sound, push notification, or on-screen
How It Works
The indicator draws the Wolfe Wave pattern and the breakout arrow at the same time to avoid repainting as the pattern grows. However, in rare cases, if the breakout entry happens repeatedly, the indicator may slightly redraw the pattern. It never backpaints (it does not show signals in the past that didn’t exist at the time).
Definition of a Wolfe Wave
To qualify as a Wolfe Wave, the pattern must meet these conditions:
- Wave 3 to Wave 4 must stay inside the channel made by Waves 1 and 2
- Wave 4 must be within the channel created by Waves 1 and 2
- Wave 5 must break outside the trendline created by Waves 1 and 3
Input Parameters
- Amplitude – Sets the minimum number of bars between price points. Increase to find larger patterns. Decrease to find smaller ones. You can load the indicator multiple times to detect patterns of different sizes.
- Breakout Period – Sets the Donchian breakout period to confirm Wolfe Wave breakouts. Set to zero if you don't want to use this filter.
- Max History Bars – The number of past bars to analyze when the indicator loads.
- Display Stats – Show or hide the dashboard with performance and statistics.
- Display SL/TP Levels – Show or hide suggested stop-loss and take-profit levels.
- Display Price Labels – Show or hide labels for the pattern points on the chart.
- Drawing Options – Customize the colors and line thickness for bullish and bearish waves, and set font sizes.
- Breakouts – Choose the color and size of breakout arrows.
- Alerts – Turn alerts on or off for new patterns or breakouts.
Disclaimer
This indicator is a tool for technical analysis only and is designed to assist in chart interpretation. It does not constitute financial advice, investment recommendation, or any guarantee of results. Trading involves a high risk of loss and can result in the loss of your entire capital. Use this indicator at your own risk and only with money you can afford to lose. For complete details, please read our Terms and Conditions.
