To identify a 3-wave downtrend until it hits a bottom on TradingView, you are looking for an indicator that tracks Elliott Wave ABC Corrections (specifically Zigzags or Flats). In market structure, a 3-wave move against the main trend is labeled A-B-C, where Wave C acts as the final "capitulation flush" before a market bottom forms and a reversal begins. [1, 2, 3]
You can look up the following highly effective open-source indicators on TradingView to identify this pattern during market open:
1. Elliott Wave Pro Engine (by Jos-ProTrader)
- What it does: Automatically detects 5-wave impulse structures and 3-wave corrective structures (A-B-C). [1]
- Why it fits: It uses precise rule-based validation to ensure Wave C actually breaks below Wave A to signal a potential macro or micro bottom. [1, 2]
2. EW Bottom Signals (by MechInvests)
- What it does: Specifically tailored for what you described. It isolates A-B-C corrections within a broader downtrend and highlights the final Wave C capitulation flush. [1]
- Why it fits: It prints a buy/reversal warning at the bottom when volume spikes and the 3-wave down-structure is completed. [1]
3. Elliott Wave [LuxAlgo]
- What it does: A popular, clean automatic script that maps out impulse and corrective sections using real-time ZigZag pivots. [1, 2]
- Why it fits: It draws automated Fibonacci retracement boxes, allowing you to estimate exactly where the 3rd wave (Wave C) will run out of steam and hit its bottom. [1, 2]
💡 Quick Guide: How to read the 3-Wave Downtrend to find the Bottom
When the market opens, a rapid 3-wave flushing pattern is highly common. Here is what your indicator will look like mathematically: [
1]
| Wave Component | Market Psychology | Visual Identification |
|---|
| Wave A (1st Wave Down) | Initial selling pressure off the open. | Sharp drop from the morning peak. |
| Wave B (2nd Wave - Relief) | Trapped buyers trying to push back up. | A weak bounce that fails to make a new high. |
| Wave C (3rd Wave - The Bottom) | Final capitulation flush where retail traders panic sell. | A heavy drop breaking below Wave A's low. The ultimate bottom is usually found when Wave C reaches 100% to 161.8% of Wave A's length. |
🛠️ How to Add Them on TradingView:
- Open your chart on TradingView.
- Click on Indicators at the top bar.
- Type
"EW Bottom Signals" or "Elliott Wave LuxAlgo" into the search box. - Click the script to add it directly onto your chart. [1, 2]
Are you looking to trade this pattern on a specific asset class (like Crypto, Forex, or US Index Futures) or a specific timeframe (like the 1-minute or 5-minute chart right at market open)?
