The wolf wave scanner indicator for the MT4 scans price charts to find wolf waves. It then constructs these waves and alerts when a signal is possible. The indicator is a great tool for forex traders because it eliminates the need to manually identify and plot wolf waves. Wolf waves are a signal of the beginning of potential bullish or negative price moves. This helps traders enter a trade that has a higher risk-reward ratio. Forex traders can identify the best entry points with a rule-based trading system.
The indicator is effective in all intraday charts as well as the daily, weekly, and monthly charts. In fact, the indicator is built on the Wolf Wave Theory. New forex traders should become familiar with the Wolf Wave Theory before trading the forex buy-and-sell signals. Forex traders who are familiar with Wolf waves and have a good understanding of them can identify these trades. They should use price action to confirm the trading signals. Forex traders can also download the indicator free of charge and install it quickly.
Wolf Waves scanner indicator for MT4 trade setup
The indicator also shows the potential bull wave in blue, the bearish wave in red, and the sweet zone in yellow.
The following rules should be followed by traders when trading wolf waves:.
- Waves 3 and 4, which should be contained in the channel between waves 1 and 2, should be surrounded by wave 1.
- The distance between waves 1 and 2 is almost the same as the distance between waves 3 and 4.
- Wave 4 should touch both the channels formed by waves 1 and 2.
- The time required to move the waves between the channels should be nearly equal.
- Wave 5 must break above the trendline that connects waves 1 and 3.
- In a trend that is bearish, wave 5 should break under the trendline of waves 1, 2, and 3.
- Traders can enter the market when the 5th wave breaks through the channel, then reverse and return to the channel. The estimated profit target is the line connecting waves 1 to 4.
Forex traders should also be aware that they must correctly identify wolf waves before trading them.
Conclusion
Wolf wave scanner indicators are a great tool for traders and wolf wave enthusiasts. It is also effective in identifying potential profit targets. Forex traders should be familiar with wolf waves and learn to trade bullish and bearish trading signals.
