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Fibonacci Ratio Analysis with Elliott WaveToday we will learn how to combine FibonacciRatio Analysis with EW for trading entries and exits.
1.618
Learn To Trade Class #3Plan Your Trade, Trade Your PlanWe will begin at 7:30 PM ET You will hear no sound until we start
Fibonacci Pisano Bigollo (Leonardo Fibonacci) circa 1170 to 1250 discovered the Fibonacci sequence by breeding rabbits. Fibonacci How many pairs of rabbits placed in an enclosed area can be produced in a single year from one pair of rabbits if each pair gives birth to a new pair each month starting with the second month?- Elliott Wave Principle
Fibonacci #s & Ratios The Fib sequence each # is the sum of the two #s preceding it, starting with 0 and 1. - 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, etc.
God does not play dice with the universe.- Albert Einstein1.618Golden Ratio
1.000 0.618 FIBONACCIOverlay a nautilus shell on top 6
FIBONACCI0.382 0.618
0.382 0.618 FibonacciFibonacci #s & Ratios
Fibonacci #s & RatiosThe Fibonacci Sequence0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, etc
Fib retracement ratios are the ratio of any # to its next higher #.Example : 0/1 = 0 (Starting Point)Example : 1/1 = 1 (Ending Point)Example : 1/2 = 0.50 (Major retracement level)Fibonacci #s & RatiosThe Fibonacci Sequence0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, etc
Fib retracement ratios are the ratio of any # to its next higher #.Once we cross the fourth set of fib #s the ratios start to narrow down to the inverse of the Golden Ratio 0.618Example : 2/3 = .6666 3/5 = .6000 5/8 = .6250 8/13 = .615313/21 = .6190 21/34 = .617634/55 = .618155/89 = .617989/144 = .6180 144/233 = .6180233/377 = .6180377/610 = .6180Fibonacci #s & RatiosThe Fibonacci Sequence0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, etc.
Extension Ratios 1.236, 1.500, 1.618, 2.0, 2.618
Derive Fib Extension levels by taking the ratio of any # to its next lower #. The sequence narrows down to the Golden Ratio 1.618Example : 1/0 = 0 1/1 = 1 2/1 = 2.000 3/2 = 1.5005/3 = 1.6668/5 = 1.60013/8 = 1.62521/13 = 1.61534/21 = 1.61955/34 = 1.61789/55 = 1.618144/89 = 1.618Fibonacci #s & Ratios0.000.6180.50100.00.3822.001.618Retracements -For entriesExternal RetracementsExpansions-For exits on trend trades-For entries on counter trend tradesRetracements ratios areused to analyze corrective Waves100%61.8%100%38.2%. by measuringprevious motive wavesFibonacci RetracementsFibonacci RetracementsHelps determine the completion of a CorrectionServes as potential Entry levels for trades in the direction of the larger trend
Key Ratios23.6%38.2%50.0%61.8%78.6%
0.000.6180.50100.00.3820.786Identify a completed 5-wave impulse & anticipatea 3-wave correctionRetracements for EntryMeasure impulse waveto define retracement levels12345ABCWatch for the end of correction for entryFibonacci RetracementsMotive Waves Already CompletedCorrective Waves To Study With RetracementsWave 1Wave 3Wave AWave W
Wave 2Wave 4Wave BWave XRetracementsRetracements
Motive Wave TipQuickly access the Trading Analysis Fib ratios within the wave countRetracements
Motive Wave TipAccess the default Fib ratios from the components panelExt. Ret. ratios areused to analyze motivewaves. by measuringprevious corrective waves.261%127.2%External RetracementsHelps determine the completion of a motive waveServes as potential Exit levels for trades in the direction of the larger trendServes as potential entry for contra-trend trades
Key Ratios127.2 %161.8 %200.0 %261.8 %423.6%
External Retracements2.001.001.2720.0001.6180.618Identify a completedcorrection & anticipate anew impulse waveExtensions for ExitMeasure corrective waveto define extension levels12345ABCWatch for the end of correction for entry123?External RetracementsCorrective Waves Already CompletedMotive Waves To Study With ExtensionsWave 2Wave 4Wave BWave X
Wave 3Wave 5Wave CWave YExt. RetracementsExternal Retracements
Motive Wave TipQuickly access the Trading Analysis Fib ratios within the wave countExternal Retracements
Motive Wave TipAccess the default Fib ratios from the components panelExpansions areused to measure motivewaves. by measuringprevious motive &corrective waves.200%Fibonacci ExpansionsFibonacci ExpansionsHelps determine the completion of a Motive wave (W.1,3,5,A or C).Serves as potential Exit levels for trades in the direction of the larger trend, or entry levels against the trend.Serves as potential entry on counter-trend trades
Key Ratios38.2 %61.8 %100.0 %161.8 %200.0 %261.8 %423.6%
12345ABCFibonacci ExpansionsIdentify a completedMotive & Correction &anticipate a new 5-wavemotive.Expansions for ExitMeasure (click) the 3 end points of the Motive& Corrective Wave.Watch for the end of the Motive wave at Expansions ratios for exit.Click 1Click 2Click 30.0000.6181.0001.618Corrective Waves Already CompletedMotive Waves To Study With ExtensionsWave 1,2Wave 3,4Wave 1-3Wave A,BWave W,XAny 2 adjacent waves in a triangle
Wave 3Wave 5Wave 5Wave CWave YWaves C, D, E
Expansions
ExpansionsMotive Wave TipQuickly access the Trading Analysis Fib ratios within the wave count
Expansions
Motive Wave TipAccess the default Fib ratios from the components panelBuilding A Fib ZoneA Fib zone is at least two Fib ratios in close proximity to each otherCombine all Fib tools: retracements, extensions & projections to calculate a Fib ZoneF.S.Z = Fib Support Zone with a completed wave pattern, these are buying opportunities F.R.Z = Fib Resistance Zone with a completed wave pattern, these are selling opportunities
Building A Fib Zone
