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Fibonacci

Fibonacci Retracement

QUICK DEFINITION

Fibonacci Retracement in Elliott Wave Theory: Price levels derived from the Fibonacci sequence where corrective waves are likely to find support or resistance. Key retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Wave 2 commonly retraces 50%-61.8% of Wave 1.

What Fibonacci Retracement Means

Price levels derived from the Fibonacci sequence where corrective waves are likely to find support or resistance. Key retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Wave 2 commonly retraces 50%-61.8% of Wave 1.

EXAMPLE

After a $20 Wave 1 advance, Wave 2 pulls back to the 61.8% retracement level ($12.36) before Wave 3 begins.

Where You'll See It

Fibonacci Retracement 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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