Fibonacci Number and Ratio Analysis
Less common is a rapid half‐cycle ratio contraction within the triangle pattern. In
Figure 10.91, we observe that the wave contracts every half cycle instead. This type of
price behavior normally suggests that a potential short‐term breakout may be imminent.10.22.4 Fibonacci time projection analysis of
elliott waves
We may employ Fibonacci‐based time projection techniques to forecast potential
tops and bottoms in the market. To forecast at which point in time a potential
reversal could occur, we may use:■ (^) Fibonacci number counts
■ (^) Fibonacci‐based wave counts
Figure 10.89 Possible Ratio Contraction Values for Waves within a Triangle Pattern.
Figure 10.90 Fibonacci Ratio Contraction within a Triangle Pattern on the Weekly
EURUSD Chart.
Source: MetaTrader 4