The Key is fitting Fractal "Elliott" Waves into support and resistance levels guided by Fibonacci Extension and Retracement mathematics. E molto simplice!I can easily understand almost any concept in TA but I can never get Elliot Wave Theory. It just seems like complete bullshit but half the people that do TA for a living swear by it.
Complete guide on Elliott Wave Theory. Learn what is Elliott Wave Theory, its history, basic structures, and Fibonacci relationship between waves.
Relation Between Fibonacci and Elliott Wave TheoryFibonacci Ratio is useful to measure the target of a wave’s move within an Elliott Wave structure. Different waves in an Elliott Wave structure relates to one another with Fibonacci Ratio. For example, in impulse wave:
Trending "Motive" Wave Up Guidelines
- • Wave 2 is typically 50%, 61.8%, 76.4%, or 85.4% of wave 1
- • Wave 3 is typically 161.8% of wave 1
- • Wave 4 is typically 14.6%, 23.6%, or 38.2% of wave 3
- • Wave 5 is typically inverse 1.236 – 1.618% of wave 4, equal to wave 1 or 61.8% of waves 1+3
Corrective Wave Down 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
- • 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