The wolf waves scanner indicator for MT4 automatically scans the price charts for wolf waves, constructs them, and alerts on a potential signal. The indicator helps forex traders by eliminating the need to manually identify and plot the wolf waves. Since Wolf waves signal the beginning of a potential bullish or bearish price move, it helps traders enter a trade with a higher risk-reward ratio. As a result, forex traders can quickly identify the best entry point with a rule-based trading system.
The indicator works well in all intraday price charts and the daily, weekly, and monthly charts. Indeed, the indicator is based on the Wolf wave theory. So, new forex traders should familiarize themselves with the wolf wave theory before attempting to trade the forex buy and sell signals. However, advanced forex trades with knowledge of the Wolf waves can identify the trades. They should apply price action to confirm the trading signals, particularly the 5th wave. Additionally, forex traders can download the indicator for free and install it easily.
Wolf Waves Scanner Indicator For MT4 Trade Setup
The above GBPUSD H1 candlestick price chart shows the Wolf waves scanner indicator for MT4 in action. Furthermore, the indicator draws the potential bull waves in blue, bearish in red, and the sweet zone in yellow.
Traders should follow the following rules while trading the wolf waves.
- Waves 3 and 4 should be contained within the channel connecting waves 1 and 2.
- The length between waves 1 and 2 should equal those of waves 3 and 4.
- Wave 4 should touch the channel formed by waves 1 and 2.
- The time required for the wave movement between the channels should be almost equal.
- For a bullish trend, wave five should break above the trendline connecting waves 1 and 3
- In a bearish trend, wave five should break below the trendline of waves 1 and 3.
- Traders should enter the market after the 5th wave breaks out of the channel and reverses back into the channel. The estimated profit target is at the line connecting waves 1 and 4.
Additionally, forex traders must understand that it is necessary to identify the Wolf waves correctly before attempting to trade them.
Indeed, the Wolf Waves scanner indicator for MT4 is a handy scanner for wolf wave enthusiasts and traders. Moreover, it is efficient in identifying the potential profit targets. However, forex traders should equip themselves with the necessary knowledge of wolf waves and trade the bullish and bearish buy and sell trading signals.