TIMESTAMPS
00:21 - UTILITY
Fibonacci Time can be used alongside Elliott Waves to give a prediction of when the next Wave high or low will be made.
Sometimes we can get the exact hour when a move can occur, other times we can get a range of a few days.
Having information of when the expected high or low will be put in can help us have more confidence in trades.
00:49 - IMPLEMENTATION
Take a Fibonacci Time pull from the start of Wave 1 to the end of Wave 4 and look for the 1-1 Fib Time Extension, so Waves 1 and 5 take the same amount of time to form.
At times, the Wave relationship can also form at the 0.618 between Waves 1 and 5.
Also possible, but rare, it can form at the 1.618.
Take a Fib Time pull from the start of Wave 1 to the end of Wave 1, then to the end of Wave 2 and look for 1.618 or 2.618 in time for the Wave 3 high, when Extended.
It can go on much longer than this, which is why it is hard to call the end of Wave 3 with Fibonacci Time. Always use this with other tools for confluence!
01:16 - EXAMPLE 1
Trend-based Fibonacci Time pull from the start of Wave 1 to the end of Wave 1, taken from the end of Wave 4.
We generally look for a 1-1 in Time, but it can occasionally take 0.618 or 1.618.
02:23 - EXAMPLE 2
Trend-based Fibonacci Time pull from the start of Wave 1 to the end of Wave 1, taken from the end of Wave 2.
We generally look for a 2.618 in Time, but can occasionally take 1.618 or 2.618, if Extended.
03:11 - IMPLEMENTATION CON’T
ZigZag corrections are the easiest to predict, as we always target a 1-1 on Fib Time and Fib Extension.
Remember, if a ZigZag channels perfectly, we expect it to end in an X Wave before another correction.
The X Wave can take 0.618 of the time the whole ZigZag took to form.
03:34 - EXAMPLE 3
Trend-based Fibonacci Time used with Trend-based Fibonacci Extension.
Both look for a 1-1 extension in a ZigZag correction.
04:41 - EXAMPLE 4
If we get a perfect channel forming at the end of Wave C, then we expect an X Wave.
Since this example channels perfectly, we do not think the overall correction has finished, and we can expect an X Wave before another corrective pattern.
05:03 - EXAMPLE 5
The X Wave is expected to form in 0.382 of the time the whole ZigZag took to form.
We can pull a Trend-based Fib Time from the start of the ZigZag to the end of the ZigZag, click twice at the end and look for 0.382 for the X Wave to finish.
05:47 - EXAMPLE 6
The Y Wave of the XYZ is expected to take 100% of the time of the W Wave.
06:57 - IMPLEMENTATION CON’T
As Flats have many different varieties, they are much harder to predict.
In general, we stick to Wave A and B relating by 1-1 and Wave A and C by 1-1.
But if Wave C extends, for example, we could see A and C relate by 1.618.
Wave A and B of a Triangle generally relate by 1.618 in time.
Wave B and C of a Triangle generally relate by 1-1.
Wave C and D of a Triangle generally relate by 1-1.
Wave D and E of a Triangle generally relate by 0.618, making Wave E the quickest.
09:15 - EXAMPLE 7
Fibonacci ratio as percentages.
0.382 = 38.2%
0.618 = 61.8%
1-1 = 100%
1.618 = 161.8%
2.618 = 261.8%
08:33 - TIPS & TRICKS
*Generally, Waves relate in time by 61.8%, 100% or 161.8%.
*Occasionally shorter Waves relate by 38.2% and longer Waves by 261.8%.
*Take Fibonacci Time pulls from different time frames to find confluence. This will likely give a small range of time, not an exact hour, still very helpful.
*Do not use Fibonacci Time alone. Always look for confluence with other tools.