Scanning Wolfe Wave Wedges with Multi-Level Zigzag Pivots
Summary
This indicator searches zigzag pivot sequences for five-point structures that meet geometric conditions for a Wolfe wave. It uses multiple zigzag levels, configurable pivot length and depth, and a minimum level setting to examine candidate patterns. The scan checks the relative highs and lows of the pivots, then tests whether the boundary lines converge in a contracting wedge and are positioned to close within a limited projection.
Accepted patterns are drawn with their zigzag legs and optional projected line, and the script can alert when a new Wolfe wave is identified. It tracks recent pivot sets to avoid rediscovering patterns with substantial overlap; an additional setting can suppress wedges that share a starting region. The document explains detection and display mechanics but provides no trade entry, exit, profitability, or out-of-sample evidence. Zigzag pivots can be revised as price develops, so detected structures depend on the chosen settings and should not be treated as validated forecasts.
Key ideas
- The scanner evaluates five successive zigzag pivots against Wolfe wave high-low relationships.
- It supports scanning across progressively derived zigzag levels, subject to a minimum level setting.
- Candidate boundary lines must contract and meet a projected convergence condition to be retained.
- Optional drawings show the pivots, wedge boundaries, and a projection based on selected pivot points.
- The indicator identifies chart patterns but supplies no trading rules or evidence of predictive performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.