About the Wolfe Waves Scanner Indicator
The Wolfe Waves Scanner indicator for MT4 is a pattern recognition tool designed to detect potential market reversals.
It automatically scans price action for completed Wolfe Waves formations and highlights possible turning points.
This saves traders significant time compared to drawing and validating the pattern manually.
Wolfe Waves are known for identifying exhaustion phases before a new trend begins.
Once the pattern completes, price often reacts strongly in the opposite direction.
All internal parameters can be adjusted from the indicator settings.
This allows traders to control how strict or flexible the pattern detection should be.
Free Download
Download the “wolfe-waves-scanner.mq4” MT4 indicator
Key Features
- Automatically scans for bullish and bearish Wolfe Waves patterns.
- Helps identify early trend reversal opportunities.
- Eliminates the need for manual pattern drawing.
- Fully customizable input parameters.
Indicator Chart
The Wolfe Waves Scanner indicator highlights completed Wolfe Wave formations directly on the price chart.
Bullish patterns suggest a potential upside reversal, while bearish patterns point to downside pressure.
The marked zones help traders focus on high-probability reversal areas.
Guide to Trade with Wolfe Waves Scanner
Buy Rules
- Wait for the indicator to confirm a completed bullish Wolfe Waves pattern.
- Ensure price shows rejection from the final wave point.
- Enter a buy trade after bullish follow-through begins.
- Ignore signals that form during extremely low volatility.
Sell Rules
- Wait for the indicator to confirm a completed bearish Wolfe Waves pattern.
- Look for price hesitation near the final wave high.
- Enter a sell trade once bearish movement starts.
- Avoid entries if price immediately invalidates the pattern.
Stop Loss
- For buy trades, place the stop slightly below the final Wolfe Wave low.
- For sell trades, place the stop slightly above the final Wolfe Wave high.
- Keep the stop fixed until price confirms direction.
- Exit the trade if the pattern becomes invalid.
Take Profit
- Target the opposite side of the projected Wolfe Wave channel.
- Consider partial exits at prior reaction levels.
- Close the position if momentum weakens prematurely.
- Let price extend if a strong trend develops.
Wolfe Waves Scanner and Trend Signal Trader Forex Strategy for MT4
This MT4 forex strategy combines the pattern recognition of the Wolfe Waves Scanner MT4 Forex Indicator with the entry signals from the Trend Signal Trader MT4 Forex Indicator.
It is suitable for M15, M30, and H1 charts and is designed for traders who want to enter trades after the completion of bullish or bearish Wolfe Waves patterns, confirmed by clear trend signals.
This strategy is effective for both intraday and swing trading.
The Wolfe Waves Scanner identifies potential bullish or bearish patterns.
A completed bullish Wolfe Wave indicates a buy trend, while a completed bearish Wolfe Wave indicates a sell trend.
The Trend Signal Trader confirms entries with blue arrows for buy signals and magenta arrows for sell signals.
Combining pattern completion with arrow confirmation helps traders enter trades with high probability setups aligned with the trend.
Buy Entry Rules
- The Wolfe Waves Scanner shows a completed bullish Wolfe Wave pattern.
- A blue arrow appears on the Trend Signal Trader, confirming the buy entry.
- Enter a buy trade at the close of the candle where both indicators align.
- Place the stop loss below the most recent swing low or the breakout point of the Wolfe Wave.
- Keep the trade open while the blue arrow remains and price maintains the bullish structure.
- Close the trade immediately if a magenta arrow appears or if price breaks below the Wolfe Wave support.
Sell Entry Rules
- The Wolfe Waves Scanner shows a completed bearish Wolfe Wave pattern.
- A magenta arrow appears on the Trend Signal Trader, confirming the sell entry.
- Enter a sell trade at the close of the candle where both indicators align.
- Place the stop loss above the most recent swing high or the breakout point of the Wolfe Wave.
- Keep the trade open while the magenta arrow remains and price maintains the bearish structure.
- Close the trade immediately if a blue arrow appears or if price breaks above the Wolfe Wave resistance.
Advantages
- Combines pattern recognition with trend confirmation for high probability trades.
- Helps traders enter trades with precise timing following Wolfe Wave completions.
- Reduces the chance of countertrend entries by requiring dual indicator confirmation.
- Can be used across different currency pairs and gold to generate frequent setups.
Drawbacks
- Less effective in choppy or sideways markets where Wolfe Wave patterns may fail.
- Requires monitoring multiple timeframes to confirm pattern completion and trend alignment.
- Entry signals may be delayed in very fast-moving markets.
- Overtrading may occur if Wolfe Wave patterns are interpreted incorrectly.
Case Study 1
On EURUSD M30 during the London session, a bullish Wolfe Wave pattern completed, signaling a potential buy trend.
Shortly after, a blue arrow appeared on the Trend Signal Trader, confirming the entry.
A buy trade was entered and held while both signals aligned, closing for 42 pips when the trend structure began showing weakness.
Case Study 2
On GBPJPY H1 during the New York session, a bearish Wolfe Wave pattern completed, indicating a sell trend.
A magenta arrow appeared on the Trend Signal Trader, confirming the sell entry.
The trade was opened and closed for 51 pips when the blue arrow appeared, effectively capturing a short-term downward move in line with the Wolfe Wave pattern.
Strategy Tips
- Only enter trades when the Wolfe Wave pattern is fully completed and the Trend Signal arrow confirms direction.
- Use M15 for quicker intraday entries, M30 for moderate trades, and H1 for longer intraday or swing trades.
- Focus on highly liquid pairs and gold to ensure smooth price action for Wolfe Wave formations.
- Place stops beyond the recent swing points or Wolfe Wave breakout levels for effective risk management.
- Monitor the Trend Signal arrow for early exit signals to protect profits if the trend reverses.
- Avoid trading during low liquidity or high-impact news periods to reduce false signals.
- Keep a journal to track which pairs and timeframes provide the most reliable Wolfe Wave setups.
- Consider partial profit-taking if the price approaches the projected Wolfe Wave target to lock in gains while letting the rest run with the trend.
Download Now
Download the “wolfe-waves-scanner.mq4” Metatrader 4 indicator
FAQ
What makes Wolfe Waves different from other chart patterns?
Wolfe Waves focus on natural price imbalance and symmetry.
They aim to capture reversals before a new trend fully develops.
Is confirmation required before entering a trade?
Many traders wait for price reaction after pattern completion.
This helps filter weaker setups and improves timing.
Summary
The Wolfe Waves Scanner indicator automates one of the most respected reversal patterns in technical analysis.
It allows traders to identify potential turning points without manual pattern analysis.
Its flexibility across markets and time frames makes it suitable for many trading styles.
With proper confirmation, it can become a valuable addition to a reversal-based trading approach.
