The Advanced Wolfe Wave indicator will help you trade bullish and bearish trend reversals in the markets. You will be able to identify areas of temporary imbalance on your charts easily. The indicator displays buy and sell signals with precise price targets and stop-loss levels. The screener provided with the Wolfe Wave indicator will help you identify reversal opportunities in real-time.

Installing the Indicator

Before installing the indicator, you must purchase a license or subscribe to the trial version. The indicator is available on the Prorealcode marketplace at this address:

https://market.prorealcode.com/product/advanced-wolfe-wave-indicator-screener

Installing the Advanced Wolfe Wave indicator is a quick and easy process. Follow the standard installation procedure described on this page:

https://market.prorealcode.com/how-to-install-my-product-in-prorealtime

Note: The Advanced Wolfe Wave pack consists of two indicators: the “Bullish Wolfe Wave” and the “Bearish Wolfe Wave“. These two indicators will be installed automatically after uploading your license number to your Prorealtime platform.

Launching the Indicator

After installing the license on your ProRealTime platform, the indicator will be available in the Indicators & Trading Systems window in the “ProRealCode MarketPlace” section:

To access the Indicators window, click on the “Price” icon located on the Price Chart window, then click “Add Indicator…“:

To access the indicator, refer to the “ProRealCode MarketPlace” section or type the name “Wolfe Wave” in the search bar. Double-click on the “Bullish Wolfe Wave” or “Bearish Wolfe Wave” indicator to display it in the price window.

Why does the price chart become flat after loading the indicator?

The indicator returns buy and sell signals. This allows you to use the indicator to create alerts and backtests. It returns 1 for buy signals and -1 for sell signals. These values ​​are displayed by default on the price chart. This automatically adjusts the chart size, making it flat.

To avoid having to readjust the price chart, follow these steps:

1. Double-click on the price chart
2. Open the indicator configuration window
3. Scroll to the bottom of the window
4. Uncheck the boxes in the “Line” column

The price chart will readjust; you won’t need to repeat this action. 😊

Configuring the Indicator

The Wolfe Wave indicator is fully configurable. It offers numerous options that enable you to tailor the indicator to your specific needs. You can set the wave size, select the buy and sell signal types, apply filters, set the price target level, and change the display.

Accessing the Control Panel

To access the indicator’s control panel, click the indicator tab at the top of the price chart window and then click “Configure“:

The indicator configuration window will open and allow you to configure it according to your wishes:

Wave Size

You can define the size of Wolfe waves using various parameters:

• You can define the wave size using the “Wave Length” parameter.
• You can define the minimum proportion of wave 3 relative to the size of wave 1 using the “Wave(3,1) Proportion Min” parameter. A value of 50 means that the minimum size of wave 3 will be 50% of wave 1.

Triangle Size

A Wolfe wave forms a triangle from the obliques (1,4) and (1,3). The intersection point of these two obliques corresponds to the Estimated Time of Arrival (ETA). You can set the minimum and maximum number of candles between the fifth Wolfe wave and the ETA. That will allow you to filter the Wolfe wave detection based on the size of the pattern.

• You can set the minimum number of candles between wave 5 and the ETA with the “ETA Distance Min” parameter.
• You can set the maximum number of candles between wave 5 and the ETA with the “ETA Distance Max” parameter.

Buy and Sell Zones

The indicator identifies areas of imbalance, referred to as “Sweet Zones” or “Tasty Zones“. It also offers an extended zone, expanding buying and selling opportunities. It displays these zones on the price chart to help you spot them.

You can display the buy and sell zones associated with each Wolfe Wave using the “Sweet Zone” and “Extended Zone” parameters:

Buy and Sell Zone Signals

You can select different types of buy and sell signals related to the selected zone(s). The indicator offers the following three signals:

Price In Zone:

• The indicator displays a buy signal if the price enters the selected zone of a bullish Wolfe Wave.
• The indicator displays a sell signal if the price enters the selected zone of a bearish Wolfe Wave.

Price Breaks Zone:

• The indicator displays a buy signal if the price breaks upwards through the upper line of the selected zone of a bullish Wolfe Wave.
• The indicator displays a sell signal if the price breaks downwards through the lower line of the selected zone of a bearish Wolfe Wave.

Price Tests Zone:

• The indicator displays a buy signal if the price tests the upper line of the selected zone of a bullish Wolfe Wave.
• The indicator displays a sell signal if the price tests the lower line of the selected zone of a bearish Wolfe Wave.

Line Breakouts

The indicator detects breakouts and retests of the top and bottom lines of Wolfe waves. You can choose the signal(s) of your choice from the following four:

Price Breaks Top-line:

• The indicator displays a buy signal when the price breaks upwards through the top line of a bullish Wolfe wave.
• The indicator displays a sell signal when the price breaks downwards through the top line of a bearish Wolfe wave.

Price Tests Top-line:

• The indicator displays a buy signal when the price tests the top line of a bullish Wolfe wave.
• The indicator displays a sell signal when the price tests the top line of a bearish Wolfe wave.

Price Breaks Bottom-line:

• The indicator displays a buy signal when the price breaks upwards through the bottom line of a bullish Wolfe wave.
• The indicator displays a sell signal when the price breaks downwards through the bottom line of a bearish Wolfe wave.

Price Tests Bottom Line:

• The indicator displays a buy signal when the price tests the bottom line of a bullish Wolfe Wave.
• The indicator displays a sell signal when the price tests the bottom line of a bearish Wolfe Wave.

Pattern Detection

You can display when the indicator detects a Wolfe Wave by clicking on the “Figure Detection” parameter:

In this case, the indicator will display the letter “D” on the candlestick for which it detected the pattern:

Signal Filtering

The indicator offers several options for filtering buy and sell signals:

Signal Validation

• The “Validated Signals” option allows you to retain only signals whose next candle closes in the direction of the signal.

Strength Filters

• The “with Volume” option filters buy signals accompanied by buying volumes and sell signals accompanied by selling volumes.
• The “with Divergence” option filters buy signals that appear in a bullish divergence and sell signals that occur in a bearish divergence.

Trend Filters

• The “in the Trend” option only retains buy signals when the trend is bullish and sell signals when the trend is bearish.
• The “Reversal” option only retains buy signals if the trend is bearish and sell signals if the trend is bullish.

Displaying the Estimated Price at Arrival (EPA)

You can display the Estimated Price at Arrival (EPA) line and its value by checking the “Display EPA Line” and “Display EPA Text” options:

The EPA line can help you define your price target, relative to the Wolfe Wave structure:

Price Target and Stop Loss

The indicator automatically calculates price targets and stop-loss levels based on the Wolfe structure’s construction points.

• You can choose to display these levels by checking the “Take Profit” and “Stop Loss” boxes.
• You can adjust these levels using the “TP Level” and “SL Level” parameters.

Display Options

You can customize the indicator’s display using various options:

Here are the descriptions of the display options:

Option	Description
Wave Color	Wolfe Wave Color
Zone Color	Buy and Sell Zone Color
Line Thickness	Line Thickness of the waves, target, and stoploss lines
Font Size	Font Size of the displayed data
Transparency	Transparency of the Wave and Buy and Sell Zone Background Colors

Data Returned by the Indicator

The Advanced Wolfe Wave indicator returns data that you can use to create alerts and backtest strategies.

Here is the data returned by the indicator with its descriptions:

DATA	Description
Signal	Buy or sell signal. Possible Values: 1: Buy signal -1: Sell signal 0: No breakout or retest signal
EPA (Long/Short)	EPA value.
Target (Long/Short)	Target associated with the signal. Its value depends on the selected target level.
Stoploss (Long/Short)	Stop-loss associated with the signal. Its value depends on the selected stop-loss level.
WW 1, WW 2, WW 3, WW 4, WW 5	Wolfe Wave values.

Creating an Alert System

The Prorealtime platform allows you to create trading alerts. You can use the Advanced Wolfe Wave indicator to create alerts for bullish or bearish breakouts.

Here are the steps you need to follow to create an alert:

1. Configure the Indicator

Before creating an alert, you must configure the Advanced Wolfe Wave indicator. The Prorealtime platform will use the configuration you have chosen to send you alerts.

2. Open the Alerts Window

To set up an alert, you must open the Alerts window. To do this, right-click on the price chart and click “Create New Alert.” This will open the following window:

3. Select the Wolfe Wave indicator

You must select the Wolfe Wave indicator for the Prorealtime alert system to use the signals returned by this indicator:

4. Set the values

The Wolfe Wave indicator returns a value of 1 when a signal is detected. You must select the “equals” sign and enter a value of “1“:

5. Manage triggers

The trigger section allows you to choose the alert timeframe. In this example, the platform will send alerts once a day when a signal occurs:

6. Create the alert

After checking your alert settings, click the “Create Alert” button:

Backtesting a Strategy

You can integrate the indicator into a backtest to test a configuration. To do this, you must use the “CALL” function:

mySignal, myEPALong, myTargetLong, myStopLossLong, myWW1, myWW2, myWW3, myWW4, myWW5 = CALL "Bullish Wolfe Wave"[30, 50, 0, 500, 1, 0, 0, 1, 1, 10, 1, 1, 0, 0, 1, 1, 1, 0, 0, 0, 1, 1, 1, 2, 1, 2, 14, 2, 3, 4, 10](close)

Calling the Indicator in a Backtest

To call the indicator in a backtest, you must pass its configuration parameters. I’ve created two example codes to help you integrate the indicator into a strategy. The variable names are the same as those of the indicator.

Code for Bullish Wolfe Waves

The following code calls the Bullish Wolfe Wave indicator and will open long positions after a bullish signal occurs:

//--------------------------------------------------------//
// *** Bullish Wolfe Wave Backtest  *** //
//--------------------------------------------------------//
// Author: Vivien Schmitt
// Website: https://artificall.com
// Indicator: Bullish Wolfe Wave
// Description: https://artificall.com/indicator/prt/wolfe-wave/
// Marketplace: 
//--------------------------------------------------------//

DEFPARAM CUMULATEORDERS = False
DEFPARAM PRELOADBARS = 1000

//--------------------------------------------------------//
// *** POSITION SIZE *** //
//--------------------------------------------------------//
// Capital to invest
ONCE CapitalToInvest = 10000
// Minimum number of contracts
ONCE NumberOfContractsMin = 1
// Position Size
NumberOfContracts = MAX(ROUND(CapitalToInvest / Close, 2), NumberOfContractsMin)

//--------------------------------------------------------//
// *** SETTING BLOCK *** //
//--------------------------------------------------------//

// * Figure Properties
ONCE WaveLength = 30
ONCE WaveProportion = 50
ONCE ETADistanceMin = 0
ONCE ETADistanceMax = 500

// * Signals
ONCE SweetZone = 1
ONCE ExtendedZone = 0
ONCE PriceInZone = 0
ONCE PriceBreaksZone = 1
ONCE PriceTestsZone = 1
ONCE ZoneExtension = 10
ONCE PriceBreaksTopLine = 1
ONCE PriceTestsTopLine = 1
ONCE PriceBreaksBottomLine = 0
ONCE PriceTestsBottomLine = 0
ONCE FigureDetection = 0

// * Filters
ONCE ValidatedSignal = 1
ONCE withVolume = 1
ONCE withDivergence = 0
ONCE inTheTrend = 0
ONCE Reversal = 0

// * Risk management
ONCE DisplayEPALine = 1
ONCE DisplayEPAText = 1
ONCE isTarget = 1
ONCE TargetLevel = 2
ONCE isStoploss = 1
ONCE StoplossLevel = 2

// * Display options
ONCE WaveColors = 14
ONCE BuyAreaColor = 2
ONCE LineThickness = 3
ONCE FontSize = 4
ONCE Transparancy = 10

//--------------------------------------------------------//
// * INDICATOR CALLING * //
//--------------------------------------------------------//
mySignal, myEPALong, myTargetLong, myStopLossLong, myWW1, myWW2, myWW3, myWW4, myWW5 = CALL "Bullish Wolfe Wave"[WaveLength, WaveProportion, ETADistanceMin, ETADistanceMax, SweetZone, ExtendedZone, PriceInZone, PriceBreaksZone, PriceTestsZone, ZoneExtension, PriceBreaksTopLine, PriceTestsTopLine, PriceBreaksBottomLine, PriceTestsBottomLine, FigureDetection, ValidatedSignal, withVolume, withDivergence, inTheTrend, Reversal, DisplayEPALine, DisplayEPAText, isTarget, TargetLevel, isStoploss, StoplossLevel, WaveColors, BuyAreaColor, LineThickness, FontSize, Transparancy](close)

//--------------------------------------------------------//
// * Buying Conditions * //
//--------------------------------------------------------//
IF NOT OnMarket AND mySignal THEN
  // Target price
  Set Target Price myEPALong
  // Stop-Loss price
  Set Stop Price myStopLossLong
  // Buying order
  BUY NumberOfContracts CONTRACTS AT MARKET
ENDIF

Code for Bearish Wolfe Waves

The following code calls the Bearish Wolfe Wave indicator and will open short positions after a bearish signal occurs:

//--------------------------------------------------------//
// *** Bearish Wolfe Wave Backtest  *** //
//--------------------------------------------------------//
// Author: Vivien Schmitt
// Website: https://artificall.com
// Indicator: Bearish Wolfe Wave
// Description: https://artificall.com/indicator/prt/wolfe-wave/
// Marketplace:
//--------------------------------------------------------//

DEFPARAM CUMULATEORDERS = False
DEFPARAM PRELOADBARS = 1000

//--------------------------------------------------------//
// *** POSITION SIZE *** //
//--------------------------------------------------------//
// Capital to invest
ONCE CapitalToInvest = 10000
// Minimum number of contracts
ONCE NumberOfContractsMin = 1
// Position Size
NumberOfContracts = MAX(ROUND(CapitalToInvest / Close, 2), NumberOfContractsMin)

//--------------------------------------------------------//
// *** SETTING BLOCK *** //
//--------------------------------------------------------//

// * Figure Properties
ONCE WaveLength = 30
ONCE WaveProportion = 50
ONCE ETADistanceMin = 0
ONCE ETADistanceMax = 500

// * Signals
ONCE SweetZone = 1
ONCE ExtendedZone = 0
ONCE PriceInZone = 0
ONCE PriceBreaksZone = 1
ONCE PriceTestsZone = 1
ONCE ZoneExtension = 10
ONCE PriceBreaksTopLine = 1
ONCE PriceTestsTopLine = 1
ONCE PriceBreaksBottomLine = 0
ONCE PriceTestsBottomLine = 0
ONCE FigureDetection = 0

// * Filters
ONCE ValidatedSignal = 1
ONCE withVolume = 1
ONCE withDivergence = 0
ONCE inTheTrend = 0
ONCE Reversal = 0

// * Risk management
ONCE DisplayEPALine = 1
ONCE DisplayEPAText = 1
ONCE isTarget = 1
ONCE TargetLevel = 2
ONCE isStoploss = 1
ONCE StoplossLevel = 2

// * Display options
ONCE WaveColors = 14
ONCE BuyAreaColor = 2
ONCE LineThickness = 3
ONCE FontSize = 4
ONCE Transparancy = 10

//--------------------------------------------------------//
// * INDICATOR CALLING * //
//--------------------------------------------------------//
mySignal, myEPAShort, myTargetShort, myStopLossShort, myWW1, myWW2, myWW3, myWW4, myWW5 = CALL "Bearish Wolfe Wave"[WaveLength, WaveProportion, ETADistanceMin, ETADistanceMax, SweetZone, ExtendedZone, PriceInZone, PriceBreaksZone, PriceTestsZone, ZoneExtension, PriceBreaksTopLine, PriceTestsTopLine, PriceBreaksBottomLine, PriceTestsBottomLine, FigureDetection, ValidatedSignal, withVolume, withDivergence, inTheTrend, Reversal, DisplayEPALine, DisplayEPAText, isTarget, TargetLevel, isStoploss, StoplossLevel, WaveColors, BuyAreaColor, LineThickness, FontSize, Transparancy](close)

//--------------------------------------------------------//
// * Sell-Shorting Conditions * //
//--------------------------------------------------------//
IF NOT OnMarket AND mySignal=1 THEN
  // Target price
  Set Target Price myEPAShort
  // Stop-Loss price
  Set Stop Price myStopLossShort
  // Buying order
  SELLSHORT NumberOfContracts CONTRACTS AT MARKET
ENDIF

Wolfe Wave Screener

Two market scanners are included with the Advanced Wolfe Wave indicator. They will help you find opportunities based on bullish and bearish Wolfe Waves. You can apply them to predefined or custom lists, across all asset classes and time frames.

Both screeners accept the same parameters as the indicators, except for the risk management and display options.

Installing the Screener

The installation procedure for the screener is identical to that of the indicator. You will need to upload the license code to your Prorealtime platform.

To access the screener, follow these steps:

Open the ProScreener Window

You can open the ProScreener window by clicking on “View” then “ProScreener“, or by using the shortcut “Ctrl-E“:

Open the Screener Management window

Click View, then ProScreener (or Ctrl+E):

Click on the “Create or Modify a screener” wrench in the ProScreener window:

Select the Wolfe Wave Screener

• Select the screener named “Bullish Wolfe Wave Scan” to find opportunities related to bullish Wolfe waves.
• Select the screener named “Bearish Wolfe Wave Scan” to find opportunities related to bearish Wolfe waves.

Screener Configuration

The screener settings are the same as those for the indicator, except target, stop-loss, and display options that are not required for the scanner’s operation:

Wave Size

You can set the wave size, wave proportion, and minimum and maximum EPA values ​​using the following parameters:

Buy and Sell Zones

You can define buy and sell zones and their associated signals using the following parameters:

Breakouts and Retests of obliques

You can select breakouts and retests of top and bottom lines using the following parameters:

Signal Filters

You can activate validation, volume, divergence, and trend filters using the following parameters:

Timeframe and Asset List

The selection of timeframes and asset list is located in the “ProScreener Management” window.

Choosing the Timeframe

You can choose the timeframe in which the screener will search for opportunities:

Select a List of Assets

You must select a list in which you want to search for opportunities:

Launch the Screener

You can now launch the screener by clicking the “Run ProScreener” button:

Screener Results

After launching the screener, the discovered opportunities will appear in the results list. Click on a line to display it on the price chart:

Increase the Number of Opportunities

If the screener returns no results, it means that no stock matches your configuration. Here are some actions you can take to increase the number of opportunities found by the screener:

• Reduce the size of the Wolfe Waves
• Set the minimum EPA to 0 and increase the maximum EPA
• Disable the volume and strength filters
• Turn off the trend filters
• Choose major asset lists like the Nasdaq and the NYSE
• Choose a lower timeframe