How does Fibonacci work in Elliott Wave?
Fibonacci ratios in Elliott Wave measure proportional relationships between waves. The most-cited: Wave 2 retraces 61.8% of Wave 1, Wave 3 extends 1.618× Wave 1, Wave 4 retraces 38.2% of Wave 3. These ratios project entry zones, target prices, and invalidation levels.
Full Explanation
Fibonacci ratios are integral to Elliott Wave because Ralph Nelson Elliott observed market waves frequently exhibit the same proportions found across nature — the 0.618 (61.8%) golden ratio and its derivatives. Two categories of ratios are used. Retracements (23.6%, 38.2%, 50%, 61.8%, 78.6%) measure how deeply a corrective wave pulls back inside the previous swing — used for projecting Wave 2 and Wave 4 terminal points. Extensions (127.2%, 161.8%, 261.8%, 423.6%) project how far an impulse wave will travel beyond the previous swing — used for Wave 3 and Wave 5 targets. The single most-watched relationship: Wave 2 retraces 61.8% of Wave 1, and Wave 3 extends 1.618× Wave 1. When both proportions hold, the count has strong Fibonacci confirmation. The full reference is documented in the Artavest Elliott Wave Fibonacci Guide.
- → Elliott Wave Theory Guide — the 5-3 pattern, rules, Fibonacci, wave degrees
- → How to Count Elliott Waves — 6-step process used on 108 instruments
- → Elliott Wave Fibonacci Guide — the 7 core ratios and how they're applied
- → Rules and Guidelines — the 3 absolute rules + 7 guidelines
RELATED QUESTIONS
Weekly wave counts on 108 US instruments
Every Monday Artavest publishes fresh wave counts with primary count, alternate count, and explicit invalidation levels.
View Weekly Analysis →