This paper presents a novel algorithm for power transformer differential protection based on wavelet transform (WT) and introduces new indices to distinguish internal faults from normal operating conditions and the occurrence of the inrush current. The proposed setting-less algorithm has no limits on the structure, dimension, capacity, and core type of the transformer. For this purpose, six indices based on fault detection functions extracted from WT transform are presented. Then, weighting factors for the indices by using the least squares method are calculated. In order to validate the proposed method, the approach has been evaluated on four transformers with 2 kVA, 10 kVA, 400 kVA, and 125 MVA. The success rate of fault detection in 10 kVA, and 125 MVA transformers was 100% and in 2 kVA and 400 kVA transformers was 93.33% and 94.44%, respectively. Also, the proposed algorithm has a remarkable capability in fast fault detection to protect the power transformer.
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