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CoinsKid • 5 waves in C Tutorial

How to identify a 5-waves down C-wave (classic “bottoming” setup)

This is a practical checklist for spotting the final leg down in a larger correction (Wave C), where price often prints five smaller waves into a low before reversing and breaking out after a 3rd point of contact. The work on micro and macro timeframes.

1) Make sure you’re actually in a C-wave

A Wave C is usually the “last dump” after an A-B bounce. The structure is commonly: A down → B up → C down.

  • Wave A: first sharp sell-off (breaks prior support).
  • Wave B: relief rally that fails (lower high / resistance).
  • Wave C: another sell-off that often matches or exceeds Wave A severity.
Quick tell: if you had a big drop, then a bounce that couldn’t reclaim key levels, then a fresh drop… you’re often in C.

2) Count the 5 smaller waves inside C

The C-wave itself often breaks into five sub-waves (1-2-3-4-5). You don’t need perfection—just the idea of: push down, bounce, stronger push, bounce, final push.

1: first push down 2: bounce 3: strongest drop 4: bounce / sideways 5: final flush

The most common features:

  • Wave 3 is usually the longest/ugliest (most acceleration, most fear).
  • Wave 4 often chops sideways and fails to reclaim prior breakdown level.
  • Wave 5 is the “last flush” into support (often with divergence).

3) What “confirms” the bottom zone (what to look for)

You want confluence. These are the best tells that the 5th wave is ending:

A) Bullish divergence (best visual confirmation)

  • Price makes a lower low into Wave 5…
  • Your oscillator (RSI/F&G micro line etc.) makes a higher low.
This often shows “selling pressure is weakening” even though price pokes lower.

B) Break of the last lower-high (structure shift)

  • After Wave 5 forms, price breaks above the most recent minor lower-high.
  • Then you often see a pullback that holds higher (new support).
This turns “guessing a bottom” into “market proved it”.

C) Capitulation vibes (optional but common)

  • Big red candle(s), high volatility, sentiment at extremes.
  • Then momentum stalls: smaller red candles, fewer follow-through dumps.
Not required, but often present near major lows.

4) The “don’t get trapped” rules

Wave 5 can extend. If price keeps making clean impulsive lower lows with no divergence, you’re not done. Treat the 5-wave count as a zone, not a single candle.
Don’t buy the first bounce automatically. Waiting for a break of a minor lower-high (structure shift) reduces fakeouts.

Not financial advice — this is a pattern-recognition guide. Always use risk management.

Visual examples

Example: Wave C 5-waves down
Example: 5-waves down into the low
Example: 5 wave down in C bump n run
Example: 5 wave down in C bump n run.
Example: Bullish divergence
Example: 5 wave down in C with a weekly bullish div.

Quick “bottom zone” checklist

A-B-C structure C has 5 waves Bull div on wave 5 Structure break Retest holds


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