Wolfe wave bear setup event
Marks the fourth touch of a high, low, high, low sequence at the 100-bar close range, once per run.
It measures how close each close sits to the highest and lowest close of the last 100 bars, within eps (0.4% by default). A five-state machine advances one step per touch in the order high, low, high, low, and the fourth touch lands it in its final state, W5. W5 has no exit, and the bear name is not a direction check: the code only checks the order of touches.
How to read it
- The marker sits on the candle where the fourth touch lands: a close within eps of the 100-bar low, after touches at the high, the low and the high.
- No line or zone is drawn. Read the marker against the candles before it, where price alternated between the top and bottom of its last 100 minutes.
- One marker per run. Silence after it is the latch in the code, not a quiet market.
- At defaults it marked once in the September 2026 SPY sample of 20,160 one-minute bars.
What it outputs
- Bear setup
- Marks the bar where the fourth touch lands: a close within eps of the 100-bar low, after touches at the high, the low and the high. Fires once per run.
When it fires
Fires on the bar that completes the high, low, high, low touch sequence: the close lands within eps of the 100-bar low as the fourth touch. It marks a completed alternation at the range extremes, not a reversal or a breakout. The latch means the same run cannot fire again.
Settings
- eps
- Width of the touch band as a fraction of price: 0.004 is 0.4%. Wider bands count more closes as touches, so the four touches come sooner and the marker can land early. Narrower bands make touches rare. Negative values never match, so nothing fires.
Pitfalls
- Fires once per run: W5 has no exit, so later sequences never mark. The bull version has the same latch.
- Rare at defaults: one marker in 20,160 SPY one-minute bars. The 100-bar extremes use closes, not highs and lows, although the helper's docstring says highs and lows.
- If the 100-bar range is narrower than eps, every bar counts as touching both extremes, so the sequence can complete in four consecutive bars. Negative eps never fires.