Fibonacci Number and Ratio Analysis
10.22.2 Fibonacci ratio analysis of Corrective waves
Figure 10.86 depicts the various possible Fibonacci downside retracement ratios
for a bottom in wave 2, based on the observed price range of wave 1.
Figure 10.87 depicts the same probable retracement ratios for a bottom in
wave 2, as seen in Figure 10.86, but displayed in a ratio equivalent format. It is
essentially identical to the ratio relationships shown in the previous diagram.
Figure 10.88 depicts the various possible Fibonacci downside retracement ra-
tios for a bottom in wave 4, based on the entire observed price range as measured
from the bottom of wave 1 to the top of wave 3.Figure 10.85 Allowable Wave Size Ratios for Wave 3 under the Rules of Elliott Wave
Construction.Figure 10.86 Probable Ratio Retracement Values of Wave 1 for a Bottom in Wave 2.