The indicator looks for possible Wolfe waves on the chart.
Wolfe Waves represent one of the methods of technical analysis based on the search of specific price patterns. It has been developed by Bill Wolfe. Compared with the Elliott Waves, Wolfe Waves are different in that the analysis is done on the spot and does not require data of higher or lower timeframes.
The main advantage of the method is the ease of use. You can select a certain number of trading instruments and track patterns at certain timeframes.
Wolfe Waves can be used as the basic or additional method in a trading system. They may be useful also in combination with Elliott Waves, candlesticks, Fibonacci tools, as well as the Murray's method.
- ExtDeviation – the minimum number of points between the Highs (Lows) of two adjacent candlesticks for the Zigzag to form a local top (local bottom);
- ExtDepth – the minimum number of candlestick, for which Zigzag will not draw the second maximum (or minimum), if the last one is ExtDeviation less (or greater) than the previous one;
- ExtBackstep – the minimum number of candlesticks between the local maximal or minimal values.