Relation Between Fibonacci and Elliott Wave Theory Fibonacci ratio

Trading with Elliott Waves using Fibonacci retrenchment levels

Fibonacci Ratio Relationship and Elliot weave forecast.

 

Elliot wave Fibonacci Ratio

Fibonacci logical Ratio with Elliot waves

12345 Fibonacci Ratio:

• Wave 2 is typically 50%, 61.8%, 76.4%, or 85.4% of wave 1

• Wave 3 is typically 161.8% or 261.8% of wave 2

• Wave 4 is typically 38.2% to 61.8% of wave 3

• Wave 5 is typically 61.8%, 100%, or 123.6% of wave 4

• There are three different ways to measure wave 5. First, wave 5 is inverse 123.6 – 161.8% retracement of wave 4. Second, wave 5 is equal to wave 1. Third, wave 5 is 61.8% of wave 1-3

 

Guidelines:

• Impulse wave subdivide into 5 waves. In Figure 2, the impulse move is subdivided as 1, 2, 3, 4, 5in minor degree

• Wave 1, 3, and 5 subdivision are impulse. The subdivision in this case is ((i)), ((ii)), ((iii)), ((iv)), and ((v)) in minute degree.

• Wave 2 can’t retrace more than the beginning of wave 1

• Wave 3 can not be the shortest wave of the three impulse waves, namely wave 1, 3, and 5

• Wave 4 does not overlap with the price territory of wave 1

• Wave 5 needs to end with momentum divergence

 

 ABC Fibonacci Ratio:

• Wave B = 50%, 61.8%, 76.4% or 85.4% of wave A

• Wave C = 61.8%, 100%, or 123.6% of wave A

• If wave C = 161.8% of wave A, wave C can be a wave 3 of a 5 waves impulse. Thus, one way to label between ABC and impulse is whether the third swing has extension or not

 

Guidelines:

• Zigzag is a corrective 3 waves structure labelled as ABC

• Subdivision of wave A and C is 5 waves, either impulse or diagonal

• Wave B can be any corrective structure

• Zigzag is a 5-3-5 structure