Elliott Wave Theory
Elliott Wave Theory Elliott Wave Theory uses Fibonacci retracement (e.g., 38.2%, 50%, 61.8%) and extension levels (e.g., 161.8%) to predict price targets and correction depths within its 5-wave impulse and 3-wave corrective cycles. These ratios help define potential support/resistance zones for waves 2, 4, A, B, and C, and project extensions for waves 3 and 5. Common Fibonacci levels in Elliott Wave (relative to prior waves) · Wave 2 (Retracement): Often 50%, 61.8%, 78.6% of Wave 1. · Wave 3 (Extension): Often 161.8% (or 261.8%) of Wave 1. · Wave 4 (Retracement): Often shallower, e.g., 23.6%, 38.2%, or 50% of Wave 3. · Wave 5 (Extension/Equality): Often targets 100% of Wave 1, or 61.8% of Wave 1+3 (or inverse 1.236-1.618 of Wave 4). · ...