1) Make sure youâre actually in a C-wave
A Wave C is usually the âlast dumpâ after an A-B bounce. The structure is commonly:
A down â B up â 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 couldnât reclaim key levels, then a fresh drop⌠youâre 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 donât need perfectionâjust 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 âlast flushâ into support (often with divergence).
3) What âconfirmsâ 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 5âŚ
- Your oscillator (RSI/F&G micro line etc.) makes a higher low.
This often shows âselling pressure is weakeningâ 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 âguessing a bottomâ into âmarket proved itâ.
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 âdonât get trappedâ rules
Wave 5 can extend. If price keeps making clean impulsive lower lows with no divergence, youâre not done.
Treat the 5-wave count as a zone, not a single candle.
Donât buy the first bounce automatically. Waiting for a break of a minor lower-high (structure shift) reduces fakeouts.
Not financial advice â this is a pattern-recognition guide. Always use risk management.
Visual examples
Example: 5-waves down into the low
Example: 5 wave down in C bump n run.
Example: 5 wave down in C with a weekly bullish div.
Quick âbottom zoneâ checklist
A-B-C structure
C has 5 waves
Bull div on wave 5
Structure break
Retest holds