THE HAnDBook of TECHniCAl AnAlysis
18.8 Fibonacci Ratio and Number Analysis of Elliott Waves
Elliott waves are best understood in terms of Fibonacci price and time ratios and
Fibonacci number sequences. For a full treatment of how Elliott waves are ana-
lyzed using Fibonacci ratios and number sequences, please refer to Chapter 10.
18.9 Chapter Summary
As we have seen, Elliott wave analysis gives the practitioner a sense of where
and how far the market may be traversing. Combining form, which is the most
important characteristic of Elliott wave analysis, with Fibonacci ratio analysis
provides a powerful way of forecasting potential market action. The reader is ad-
vised to read Frost and Prechter’s excellent book entitled Wave Principle: Key to
Market Behavior for a more detailed treatment of the topic.
Chapter 18 Review Questions
- Explain the difference between motive and corrective waves.
- Describe the various corrective flat patterns found in Elliott waves.
- What is alternation? Give two examples of alternation.
- What are the rules associated with corrective triangles?
- List the most common Fibonacci price and time ratios associated with impulse
and corrective waves.
- List all nine wave degrees and their labeling conventions from the Grand Su-
percycle down to the Subminuette.
- List as many wave guidelines as you can.
- Describe two W‐X‐Y corrective combinations in detail.
figure 18.16 Wave Equality.
