TIMESTAMPS
00:23 - UTILITY
Elliott Waves are only useful when used in conjunction with Fibonacci.
Fibonacci Time, Extensions and Retracements are more powerful when used alongside Elliott Waves. This is because each wave has a Fibonacci Relationship.
Waves can have a Fibonacci Relationship expectancy and we can use this to predict future price action.
00:48 - IMPLEMENTATION
The two unextended waves in an Impulse normally relate by 61.8% or 100% in time and price.
As Wave 3 is generally the extended Wave, we look for Wave 5 to be 100% the length of Wave 1 and to take 61.8% of the time that Wave 1 took to form.
Wave 3 must be more than 161.8% of Wave 1, if Wave 3 is the extended Wave.
When Wave 5 is the extension, Wave 4 will frequently retrace as much as 50% - 66% of Wave 3.
If Wave 5 is the extended Wave, it will generally be 161.8% of the entire move, from the start of Wave 1 to the end of Wave 3. Take the 3rd touch of this extension from the end of Wave 4.
03:26 - EXAMPLE 1
We see a heavy Retracement in Wave 4 before a 5th Wave Extension.
The Extension target is 1.618, from the start of Wave 1 to the end of Wave 3, taken from the end of Wave 4.
03:55 - EXAMPLE 2
We are shown Wave 1’s relationships to Waves 3 and 5.
Wave 3 is generally expected to be a 1.618 Extension (minimum) of Wave 1.
When Wave 3 extends, we expect Wave 5 to be a 1-1 Extension of Wave 1.
05:22 - IMPLEMENTATION CON’T
A Wave is an Extension if it is the longest wave in a sequence.
It should be at least 161.8% of the next longest Wave.
The 2nd Wave most commonly retraces 61.8% - 66% of the 1st Wave’s length.
The 4th Wave most commonly retraces 38.2% - 50% of the 3rd Wave.
Flats and their Fib Relationships:
A Strong B in a Flat Expansion most commonly hits 138.2%, but 161.8% is possible.
After a Strong B in a Flat, Wave C is normally equal to Wave A.
For a Fibonacci ratio, we can look for the 161.8% or 61.8% of Wave A.
Wave C of a ZigZag is usually 100% the length of Wave A, extended from the end of Wave B. The maximum length of Wave C is the 2.618 Extension.
Waves A, C, and E in a Triangle generally relate by 66%.
07:10 - EXAMPLE 3
Using Fibonacci in Flat Corrections.
Fibonacci Expansion from top to bottom of Wave A = generally 1.382 Fib target.
Fibonacci Extension 1-1 target, the length of Wave A from top of Wave B.
08:48 - EXAMPLE 4
In a ZigZag, Wave B generally retraces to the CC.
Wave C is generally a 1-1 Extension of Wave A (taken from the end of Wave B).
09:34 - EXAMPLE 5
Fibonacci Relationships within a Triangle generally relate by 66% (CC).
10:25 - TIPS & TRICKS
*Wave 3 must be more than 161.8% of Wave 1, if Wave 3 is the extended wave.
*Wave 5 should be at least 100% the length of Wave 1.
*Wave 5 should take 61.8% of the amount of time it took Wave 1 to form.