Corrective Wave and Chart Pattern Analysis - RSI TFW DivergenceCorrective 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.
