Corrective Wave and Chart Pattern Analysis - RSI TFW Divergence
Corrective Wave Structure a ABC Analysis pattern in TFW timeframe
Observations:
A bullish divergence is evident in the momentum near the support zone indicating weakening bearish momentum, the end of wave C, and a potential reversal to the upside.
Analysis:
- Wave A: completed descending channel retraced 61.8% of previous uptrend with 5 wave diagonal pattern - wave A.1 the shortest and wave A.3 is the longest.
- Wave B: retraced 61.8% of Wave A with an extended flat 3 wave abc pattern - wave B.c extended 261.8% of B.a
- Wave C: A descending triangle /ending diagonal pattern is visible within Wave C current extending 61.8% of Wave A.
Support:
- The Green zone (liquidity support) around 4.50 THB is significant, acted as a strong support level multiple times in the past.
- A breakdown below this zone could lead to further downside (red arrow scenario) while holding above it might trigger a reversal (green arrow scenario).
Breakout:
- Resistance levels marked by Wave B’s high 6.4+ THB and intermediate levels around 4.9+ THB are critical breakout moving average 20 week dynamic resistance zone.
- An upward breakout past these levels would confirm the end of the corrective phase and the start of a new bullish impulse wave.
Potential Scenarios:
Bullish Case (Green Arrows):
TP1: Price holds the liquidity support zone and breaks above 5.50 THB (near-term resistance).
TP2: A successful retest of 6.50 THB Wave B zone could lead to a new bullish wave formation.
RRR: 3:1
Bearish Case (Red Arrow):
A break below the liquidity support zone 4.50 THB would confirm continued bearish pressure.
Price could target lower levels, possibly extending toward 3.50 THB or beyond.
Action:
+ Look for bullish confirmation with a breakout above descending triangle (ending diagonal) resistance 4.80 THB zone
+ Watch for volume surge volume profile indicator to validate the reversal trigger.
+ Monitor price action near the liquidity support zone 4.50 THB.
+ Accumulate only if the support holds and momentum confirms a bullish reversal.
Always trade with affordable risk, respect your stop.
Observations:
A bullish divergence is evident in the momentum near the support zone indicating weakening bearish momentum, the end of wave C, and a potential reversal to the upside.
Analysis:
- Wave A: completed descending channel retraced 61.8% of previous uptrend with 5 wave diagonal pattern - wave A.1 the shortest and wave A.3 is the longest.
- Wave B: retraced 61.8% of Wave A with an extended flat 3 wave abc pattern - wave B.c extended 261.8% of B.a
- Wave C: A descending triangle /ending diagonal pattern is visible within Wave C current extending 61.8% of Wave A.
Support:
- The Green zone (liquidity support) around 4.50 THB is significant, acted as a strong support level multiple times in the past.
- A breakdown below this zone could lead to further downside (red arrow scenario) while holding above it might trigger a reversal (green arrow scenario).
Breakout:
- Resistance levels marked by Wave B’s high 6.4+ THB and intermediate levels around 4.9+ THB are critical breakout moving average 20 week dynamic resistance zone.
- An upward breakout past these levels would confirm the end of the corrective phase and the start of a new bullish impulse wave.
Potential Scenarios:
Bullish Case (Green Arrows):
TP1: Price holds the liquidity support zone and breaks above 5.50 THB (near-term resistance).
TP2: A successful retest of 6.50 THB Wave B zone could lead to a new bullish wave formation.
RRR: 3:1
Bearish Case (Red Arrow):
A break below the liquidity support zone 4.50 THB would confirm continued bearish pressure.
Price could target lower levels, possibly extending toward 3.50 THB or beyond.
Action:
+ Look for bullish confirmation with a breakout above descending triangle (ending diagonal) resistance 4.80 THB zone
+ Watch for volume surge volume profile indicator to validate the reversal trigger.
+ Monitor price action near the liquidity support zone 4.50 THB.
+ Accumulate only if the support holds and momentum confirms a bullish reversal.
Always trade with affordable risk, respect your stop.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.