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Fibonacci

0.618 Ratio

QUICK DEFINITION

0.618 Ratio in Elliott Wave Theory: The inverse of the golden ratio (1/1.618). It is the single most important ratio in Elliott Wave analysis. Wave 2 commonly retraces 61.8% of Wave 1, making this the primary level for identifying Wave 2 completion.

What 0.618 Ratio Means

The inverse of the golden ratio (1/1.618). It is the single most important ratio in Elliott Wave analysis. Wave 2 commonly retraces 61.8% of Wave 1, making this the primary level for identifying Wave 2 completion.

Where You'll See It

0.618 Ratio appears regularly in Artavest's weekly wave-count analysis across 108 US stocks and ETFs. It's part of the fibonacci family of Elliott Wave concepts and shows up most often when analysts are projecting price targets or measuring retracements from the prior swing.

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RELATED TERMS

61.8% Retracement
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Golden Ratio
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