The Wolfe Waves Scanner indicator for Metatrader 4 scans any price chart for bullish and bearish Wolfe Waves price reversal patterns.
They were originally developed by Bill Wolfe and are named after him.
Wolfe Waves are considered a relatively advanced trading pattern and are based on specific geometric shapes that appear on price charts.
How Does It Work?
A typical Wolfe Wave pattern consists of five waves, with the following characteristics:
Wave 1: This is the initial wave and represents a bearish or bullish price movement.
Wave 2: This is a correction wave that moves against the trend of Wave 1. It usually retraces a significant portion of the price movement in Wave 1.
Wave 3: This wave represents a smaller move in the same direction as Wave 1. It is usually shorter than Wave 1.
Wave 4: Another correction wave, similar to Wave 2, but less deep. It retraces some of the price movement in Wave 3.
Wave 5: This is the final wave and is expected to move in the direction opposite to that of Wave 3. It should be of similar length to Wave 1.
Free Download
Download the “wolfe-waves-scanner.ex4” MT4 indicator
Technical Chart
The chart presented below illustrates the Wolfe Waves Scanner indicator in action on the EUR/USD 1-hour time frame.
Simple Trading Strategy
A buy signal is generated when the blue Wolfe Waves pattern appears on the chart. Buy a break above.
A sell signal is generated when the red Wolfe Waves pattern appears on the chart. Sell a break below.
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Download the “wolfe-waves-scanner.ex4” MT4 indicator
Wolfe Waves Strategy with Trend Magic Confirmation for Better Results
This strategy combines the pattern-based precision of the Wolfe Waves Scanner Indicator with the trend-following capabilities of the Trend Magic Indicator.
While Wolfe Waves help identify key reversal zones, Trend Magic confirms the strength and direction of the new trend, reducing the chances of premature entries.
Recommended Settings
- Timeframes: M5, M15, or M30
- Currency Pairs: EUR/USD, GBP/JPY, USD/CAD
- Best Sessions: London and New York
Indicators Used
- Reversal Detector: Wolfe Waves Scanner Indicator
- Trend Confirmation: Trend Magic Indicator
Buy Setup
- Wait for a bullish Wolfe Wave pattern to appear (typically when price reaches point 5).
- Confirm that the Trend Magic line turns blue and is positioned below the price (indicating an uptrend).
- Enter a buy trade after both conditions are met.
- Set the Stop Loss a few pips below the recent swing low or Wolfe Wave point 5.
- Set Take Profit at the Wolfe Wave target line or use a fixed 20–30 pip target.
Sell Setup
- Wait for a bearish Wolfe Wave pattern to form (usually at point 5 near a market top).
- Confirm that the Trend Magic line turns red and is positioned above the price (indicating a downtrend).
- Enter a sell trade when both conditions are aligned.
- Place the Stop Loss a few pips above the most recent swing high or Wolfe Wave point 5.
- Take Profit at the Wolfe Wave target line or with a fixed 20–30 pip goal.
Risk Management Guidelines
- Limit risk to 1–2% of account balance per trade.
- Avoid trading during low liquidity hours or major news releases.
- Only take trades when both Wolfe Wave and Trend Magic agree on direction.
Strategy Summary
The Wolfe Waves Scanner Indicator is a powerful tool for identifying potential market turning points.
By combining it with the Trend Magic Indicator, traders gain a clear filter for trend confirmation, allowing for smarter, more reliable entries.
This setup works well for both scalping and short-term swing trades.
Adjustable Parameters & Settings
Wolfe bull color, Wolfe bear color, period, limit, MACD fast EMA, MACD slow EMA, MACD signal EMA, and more.
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
Technical Specifications
Currency Pairs: works on any currency pair and other trading instruments
Trading Platform: developed for Metatrader 4 (MT4)
Time Frames: works on any time frame
Indicator Type: Trading pattern
How to install the Wolfe Waves Scanner indicator in Metatrader 4?
- Copy and paste the wolfe-waves-scanner.ex4 indicator into the MQL4 indicators folder.
- You can access this folder from the top menu as follows:
- File > Open Data Folder > MQL4 > Indicators (paste here)
- Restart the trading platform
- Add the indicator to the chart
How to remove the indicator from the chart?
- Right-click on the chart with your right mouse button
- Select the indicator’s list from the dropdown menu
- Click on the indicator’s name
- Click on the delete button
- Press OK
