ratios of elliot wave

8/13/2019 Ratios of Elliot Wave

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Ratios of Elliot waves

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wave 2 Retracements

12% of 38.2%

73% between 50% to 60%

15% below 62%

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wave 3

1.62 x length of wave 1



We can anticipate 45% of wave 1 between 1.62% to 1.75% x wave1

We can anticipate 30% of wave 1 between 1.75% to 2.62% x wave1

only 8% goes beyond 2.62% x wave1

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Wave 4

24% of Wave 3, or

38% of Wave 3, or

50% of Wave 3, or

62% of Wave 3

We can anticipate 15% Retracement between 24% to 30% x wave 3

We can anticipate 60%Retracement between 30% to 50% X wave 3

We can anticipate 15% Retracement between 50% to 62% x wave 3

we can anticipate 10% Retracement 62% or greater


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Wave 4 Retracement calculates two ways from end of W2 to end of W3,

backup is from beginning W1 to end of W3

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Wave 5

If wave 3 is more than 1.62% of wave 1 then

wave 5 might be equal to

= wave 1, or

= 1.62 x wave 1, or

= 2.62 x wave1

OR

If wave 3 is less than 1.62% of wave1 then

wave 5 Ratios might be

5 = .618 x (1--3) beginning of Wave 1 TO top of wave 3

5= 1 x ( 1--3) beginning of wave 1 To top of wave 3

5= 1.618 X ( 1--3) beginning of wave1 To top of wave 3

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It is always anticipated that retracement to anystock will happen at 38.2%.

But circumstances may even lead to retracement happening to 50% level or

closer to 61.8%.

What are Expansion levels:

Coomon Expansion levels are .618 / 1 / 1.618

The calculation are as follows

.618 = .618 ( B -A ) + C

1 = B -A + C

1.618 = 1.618 (B - A ) + C


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.618 of Expansion level is called TGT I. 1 of expansion level is called TGT II

and 1.618 of Expansion level is called TGT III

Hypothetical uptrend example: POINT A is Rs.20, Point B is 100 and the

retracement of POINT C is 60.

TGT I = .618(100-20)+60 = 109.45

TGT II = 100- 20 + 60 =140

TGT III = 1.618 (100-20)+60 =189.45

That means what ?? If you enter long at 60, your TGTs are 109.45 / 140 /

189.45

Now let us take the downtrend: Point A is 180 and point B is 100 and point C

on retracement is 140

Now the TGTs are as follows:

TGT I = .618(100-180)+140 = 90.56

TGT II = 100-180+140=60TGT III = 1.618 (100-180)+140=10.56

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There are many ways to apply Fibonacci studies to technical analysis and we also look for Fibonacci

ratio relationships between the related waves in a cycle. Here are some

common ratios to look for....

Wave 3 to wave 1 1, 1.618, 2.618, 4.236...

Wave 5 to wave 1 0.5, 0.618, 1, 1.27, 1.382, 1.618...

When one of the impulse waves extend, there are some common


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relationships to look for and an example of this can be seen in these

charts.

Common retrace ratios for corrections are

Wave 2 0.616, 0.786

Wave 4 0.382, 0.5

B waves 0.5, 0.618, 1.00, 1.27

Wave 2s are often sharp and deep. In an ideal world they would retrace

0.618 or 0.786 most of the time. Wave 4s tend toward a shallower retrace

and will often find support at the 0.382 level of wave 3.

B waves are generally less consistent and tend to vary in length more.


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ratios of elliot wave

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