Learning Materials
Elliott Wave Fibonacci Relationships
📈 Elliott Wave & Fibonacci:
Elliott Wave Theory combined with Fibonacci ratios offers powerful insights into market movements, helping traders identify potential reversal and continuation points.
🔍 Key Fibonacci Relationships
1 Impulse Waves:
• Wave 2: Typically retraces 50%, 61.8%, 76.4%, or 85.4% of Wave 1.
• Wave 3: Often extends to 161.8% or 261.8% of Wave 1.
• Wave 4: Usually retraces 23.6%, 38.2%, or 50% of Wave 3.
• Wave 5: Commonly extends to 61.8%, 100%, or 161.8% of Wave 1 or Wave 3.
2 Corrective Waves
• Wave A: Initial decline or rise, setting the stage for the correction.
• Wave B: Retraces 38.2%, 50%, or 61.8% of Wave A.
• Wave C: Typically equals 100% or 161.8% of Wave A.
3 Complex Corrections (Double Three - WXY)
• Wave W: First corrective structure (zigzag, flat, or triangle).
• Wave X: Retraces 50%, 61.8%, 76.4%, or 85.4% of Wave W.
• Wave Y: Extends 61.8%, 100%, or 123.6% of Wave W, but not more than 161.8%.
🔢 Fibonacci Extensions and Retracements:
Utilize Fibonacci tools to measure key levels and enhance your trading strategy.
💡 Pro Tip:
Always confirm Fibonacci levels with other indicators and market analysis for stronger signals.