Wolfe Wave Pattern Indicator
The Wolfe Wave Pattern Indicator is a technical analysis tool used by traders to identify potential price reversal points based on specific wave patterns. These patterns consist of five waves: an initial wave (1), a corrective wave (2), another advance (3), a deeper correction (4), and a final wave (5) that sets up a breakout. Trading signals from this indicator are generated when the pattern completes, often suggesting a buy signal when the price breaches the trendline drawn from wave 1 to wave 4, and a sell signal upon breaking the trendline from wave 2 to wave 5. It's crucial to combine these signals with other indicators or methods for confirmation to enhance accuracy and manage risk effectively.