The direct detection of binary systems in wide-field surveys is limited by the size of the stars point-spread-functions (PSFs). A search for elongated objects can find closer companions, but is limited by the precision to which the PSF shape can be calibrated for individual stars. We have developed the BinaryFinder algorithm to search for close binaries by using precision measurements of PSF ellipticity across wide-field survey images. We show that the algorithm is capable of reliably detecting binary systems down to approximately 1/5 of the seeing limit, and can directly measure the systems position angles, separations and contrast ratios. To verify the algorithms performance we evaluated 100,000 objects in Palomar Transient Factory (PTF) wide-field-survey data for signs of binarity, and then used the Robo-AO robotic laser adaptive optics system to verify the parameters of 44 high-confidence targets. We show that BinaryFinder correctly predicts the presence of close companions with a <5% false-positive rate, measures the detected binaries position angles within 2 degrees and separations within 25%, and weakly constrains their contrast ratios. When applied to the full PTF dataset, we estimate that BinaryFinder will discover and characterize ~450,000 physically-associated binary systems with separations <2 arcseconds and magnitudes brighter than R=18. New wide-field synoptic surveys with high sensitivity and sub-arcsecond angular resolution, such as LSST, will allow BinaryFinder to reliably detect millions of very faint binary systems with separations as small as 0.1 arcseconds.
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