Wolfe waves consist of several map waves that generate a very different series. Wolfe wave pattern is named Bill Wolfe, a trading guru. He found that if consumer behavior continues within a food supply chain and makes a false collapse on the fifth wave, it usually starts to reverse the dominant trend. He clarified that Wolfe waves might help investors find the right business doorway to launch a potential turnaround with a high-risk ratio. It can also identify a possible escape point or offer traders a target price dependent on the price pattern's symmetry.

A Wolfe Wave is utilized by traders to foresee future value developments. It is a value activity design comprising of up to five unique waves that show market interest as value moves towards a balance cost.