Price waves and their relationship to Fibonacci numbers
Each price wave is divided into a number of price waves belonging to a lower degree, which in turn can be divided into a number of price waves belonging to an even lower degree. Therefore, it can be said that each price wave is considered part of another wave that belongs to a higher degree. The drawn figure shows these relationships that we mentioned between the different degrees of price waves. In this figure, you can notice how waves No. 1 and 2 were divided into eight price waves of lower degree, and then how these eight waves were divided into 34 other waves of lower degree. Waves 1 and 2 are the only two largest waves among the first five basic waves. The next big wave, number 3, is still in the making
It is worth noting here that the mentioned numbers 12 3 13 8 5, 21 34 55 89 144 are not just random numbers, but rather they are part of the famous Fibonacci number series, which is the mathematical basis for the “price bot wave” theory.
