Auto 5-Wave Fixed Channel + Wave 5 Top / Wave 2-ABC Bottom

Auto 5-Wave Fixed Channel + Wave 5 Top / Wave 2-ABC Bottom
by Ron999

1. What this indicator does

This tool automatically hunts for bullish 5-wave impulse structures and then:

Labels the waves: W1, W2, W3, W4, W5

Draws a fixed “acceleration” channel based on the wave structure

Projects a Wave-5 target zone using a 1.618 extension

Marks the Wave-2 level as an ABC correction target

Triggers optional alerts when:

A new Wave-5 top completes

An ABC bottom forms back near the Wave-2 low

It’s designed as a mechanical, rule-based approximation of Elliott 5-wave impulses – built for traders who like the idea of wave structure but want something objective and programmable.

2. How the wave logic works

The script continuously scans for pivot highs and lows using a user-defined Pivot Length.

It only keeps the last 5 alternating pivots (high → low → high → low → high).

When those last 5 pivots form this pattern:

Pivot 1 → High (W1)

Pivot 2 → Low (W2)

Pivot 3 → High (W3)

Pivot 4 → Low (W4)

Pivot 5 → High (W5)

…the indicator treats this as a bullish 5-wave impulse.

When such a structure is detected, it “locks in” the wave prices and bars and draws the channels and labels.

Note: Pivots are only confirmed after Pivot Length bars, so swings are slightly delayed by design (standard pivot logic).

3. Channels & levels

Once a valid bullish 5-wave structure is found, the script builds three key pieces:

a) Base Acceleration Channel (Blue)

Anchored from Wave-2 low toward Wave-3 high.

This forms a rising acceleration channel that represents the impulse leg.

The channel extends to the right, so you can see how price interacts with it after W3–W5.

b) Wave-5 Target Line (Red, dashed)

Uses the height from Wave-2 low to Wave-3 high.

Projects a 1.618 extension of that height above Wave-3.

This line acts as a potential Wave-5 exhaustion zone (take-profit / reversal watch area).

c) Wave-2 / ABC Bottom Level (Green, dotted)

Horizontal line drawn at the Wave-2 low.

This acts as a retest / corrective target for the ABC correction after the impulse completes.

When price later revisits this area (within a tolerance), the script can mark it as a potential ABC bottom.

4. Labels & signals

If labels are enabled:

W1, W2, W3, W4, W5 are plotted directly on their corresponding pivot bars.

When an ABC-style retest is detected near the Wave-2 level, an “ABC” label is printed at that low.

Wave-5 Top Event

Triggered when a new valid bullish 5-wave structure is completed.

The last pivot high in the pattern is flagged as Wave-5.

ABC Bottom Event

After a Wave-5 impulse, the script watches for new low pivots.

If a new low forms within ABC Bottom Proximity (%) of the Wave-2 price, it is treated as an ABC bottom near Wave-2 and marked on the chart.

5. Inputs & customization

Show Fixed Channels
Toggle all channel drawing on/off.

Label Waves
Toggle plotting of W1–W5 and ABC labels.

Alerts: Wave-5 Top & ABC Bottom
Master switch for enabling the script’s alert conditions.

Pivot Length
Controls how “swingy” the detection is.

Smaller values → more frequent, smaller waves

Larger values → fewer, larger structural waves

ABC Bottom Proximity (%)
Allowed percentage distance between the ABC low and the Wave-2 price.

Example: 5% means any ABC low within ±5% of Wave-2 is considered valid.

6. Alerts (how to use them)

The script exposes two alertcondition() events:

Wave-5 Top (Bullish Impulse)

Fires when a new 5-wave bullish structure completes.

Use this to watch for potential exhaustion tops or to tighten stops.

ABC Bottom near Wave-2 Low

Fires when an ABC-style correction prints a low near the Wave-2 level.

Use this to stalk potential end-of-correction entries in the direction of the original impulse.

On TradingView, add an alert to the script and choose the desired condition from the dropdown.

7. How to use it in your trading

This tool is best used as a structural context layer, not a standalone system:

Identify bullish impulsive trends when a Wave-5 structure completes.

Use the Wave-5 target line as a potential area for:

Scaling out

Watching for exhaustion / divergences / reversal patterns

Use the Wave-2/ABC level and ABC Bottom signal:

To look for end of correction entries back in the trend direction

To align with your own confluence (support/resistance, volume, RSI, etc.)

It works well on crypto, FX, indices, and stocks, especially on higher timeframes where structure is cleaner.

8. Limitations & notes

This is a mechanical approximation of Elliott 5-wave theory — it will not match every analyst’s discretionary count.

Pivots are confirmed after Pivot Length bars, so signals are not instant; they’re based on completed swings.

The indicator currently focuses on bullish impulses (upward 5-wave structures).

As always, this is not financial advice. Combine it with your own strategy, risk management, and confirmation tools.

Created & coded by: Ron999
Built for traders who want wave structure + fixed channels, without the subjective Elliott argument on every chart.https://files.catbox.moe/i2bcbq.png