This paper presents anovelsignal processing approach that is able to automatically identify notches in pipelines in short distances. In addition, this method locates the geometric position of the notch and determines the size. The approach for fault detection and diagnosis presented look for as olution and then validates the solution by analyzing the signal which flows in the opposite direction. Micro Fiber Composite (MFC)t ransducers are used in an austenitic stainless steel pipeline, used in solar concentrators, in order to generate Ultrasonic Guided Waves. The main results presented in this paper can be summarized as: identification of edges or welds by multi-parametric analysis and comparison with the theoretical results predicted, notch location in the pipe by comparison of the position of echoes weighted with their amplitudes, and the flows izing of them by using attenuation curves of the echoes when theyp ropagate along the pipeline. This approach leads to employo nly one transmitter and one receptor for notch detection, location and diagnosis. The main advantage for the industry is the double check of presence of anotch with respect to other systems, which reduces false alarms during the inspections.