Wolfe wave bull setup event
Marks the fourth alternating touch of the 100-bar low and high, a possible bull setup that fires once per run.
The indicator compares each close with two channel lines: the lowest and highest close of the last 100 bars. A small state machine advances on alternating touches, a close within eps of the low, then the high, then the low, then the high. Each step waits for the next touch with no time limit and nothing resets it, so once the fourth touch completes the state stays there. The only test is those four touches: there is no wave-shape, slope or breakout check, despite the Wolfe name.
How to read it
- Markers sit on the candle where the fourth touch completes, which is near the 100-bar high of closes.
- A touch is a close within eps of the 100-bar low or high; at the default 0.4% that is about $3 on SPY near 765.
- At default settings it fired once in a month of SPY one-minute bars, so most charts show no marker at all.
- A marker is only a setup: nothing checks that price has broken above the high.
What it outputs
- Wolfe bull setup
- Marks the bar where the fourth alternating touch completes, near the recent 100-bar high. Fires once per run.
When it fires
The bar where the fourth touch completes: closes have come within eps of the 100-bar low, then high, then low, then high, in that order since the run started. Price sits near the recent high, with no breakout check. It fires once per run.
Settings
- eps
- Width of the touch band as a fraction of price (0.004 is about $3 on SPY near 765). Raising it can only add the marker or move it earlier. Lowering it can remove it or push it later. Negative values never fire.
Pitfalls
- It never re-arms: once the final state is reached there is no way back, so later setups in the same run go unmarked.
- The name suggests Wolfe wave geometry, but there are no wave proportions or line checks, and no time limit between touches, so the four touches can be days apart.
- The slider goes to -1.4, and a negative eps never matches, so the indicator silently never fires. A wide eps makes most closes count as touches, so the single marker tends to land early in the run.