WAVE CONDITIONS IMPLICATIONS FIBONACCI

POINT A coincidence of Pattern, The suspected high or The most common

ZERO Price and Time has come low tick at a major pivot Fibonacci
together to mark a major point is the ideal entry relationships
pivot that we have point. This entry has the between Elliott
identified as the 5th of a least capital risk because waves of the same
5th wave. The Elliott it is closest to the initial degree.
Wave pattern may not stop loss point - the
always be the one that we pivot. The trade off is
were expecting. When a that there will be a higher
fractal occurs it means percentage of losses. The
that a wave has ended, market does not always
ready or not. reverse where we want it
to! The pivot point is
Point Zero.
W.1 Will follow either a three New W.1 of the same PRICE
wave A-B-C or a five degree should Use internal swings
wave impulse pattern. overbalance the of lesser degree to
W.1 that follows an A-B- immediately prior project termination
C is an impulse wave. corrective pattern in price of W.1
W.1 that follows a five range but not necessarily
wave pattern is W.A of in time. TIME
an A-B-C pattern. Impulse W.1 usually
overbalances in time
Modern Elliott Wave the prior counter
analysis allows for five trend swing.
wave triangle patterns in
the W.1 position of lesser
degree waves. That
means that W.4:1 can
overlap W.1:1 without
invalidating the pattern
as an impulse wave. The
internal structure is 3-3-
3-3-3.

W.1 triangles are never

allowed as lesser degree
waves within a larger
degree W.3.
W.2 Zig-Zag (ABC) most W.2 most likely to be PRICE
common. more than 50% in time of > 50% < 78.6% W.1
W.1. Avoid premature
Triangles least likely in entry. Patience required. TIME
W.2 position and most > 50% W.1
likely in W.4. Wait for C wave minimum
completion. The first > 62% < 162% of
 counterswing is likely W.1 most likely
just the A leg of an ABC
pattern.

Must not penetrate Point

Zero or suspected change
in trend from Point Zero
is probably wrong.
W.3 Usually the longest and W.3 confirmed when the PRICE
strongest trending wave price extreme of W.1 is W.3 162% - 262% of
of the sequence. exceeded. Price should W.1
not come back and trade
W.3 cannot be the beyond the beginning of W.3 162% - 262% of
shortest wave of a five W.2. W.2
wave sequence. W.3 does
not have to be longest If suspected W.3 TIME
wave but it can never be completes five waves of W.3 almost always
the shortest. This is one lesser degree and is less longer in time than
of the very few Rules of than 100% of W.1 W.1
Elliott Wave analysis. consider that the
suspected W.3 is W.C of W.3 often equal in
W.3 always synchronizes a corrective pattern and time to complete
with an Oscillator not an impulse wave. W.0 through W.2
extreme. The Oscillator sequence.
extreme usually occurs Once W.3 exceeds 100%
before the price extreme. of W.1 look for price to
reach and probably
exceed 162% of W.1

Look for termination

conditons when W.3
exceeds 262% expansion
of W.1 or 462%
retracement of W.2
W.4 If W.2 was an ABC then Price extreme often PRICE
W.4 will probably be occurs before the < 50% of W.3
complex and vica versa. termination of the W.4 W.4 38% W.3
This is the priciple of pattern. In complex common
alternation. waves Time factors W.4:W.3 < W.2:W1
should be the primary on percentage basis
Look for minimum of consideration. W.4 62% 100%
three fractals in lower 162% W.2
time frame and minimum If Wave 4 has exceed W.4 > 23.6% < 50%
price relationship of 62% >50% of Wave 3, the W.0 - W.3
to W.2 possibility of a 5th wave
failure is increased. TIME
W.4 should not penetrate W.4 most often
W.1. A W.4 close into The Oscillator will cross related to W.3 or
 W.1 invalidates the W.5 the zero line two times W.0 - W.3
setup. This is a Rule. during W.4. First against Often longer in time
the direction of W.3 and than W.3 / W.0 - W.3
then in the direction of W.4 138% - 162% of
W.3 to signal that W.4 Parallel Projection
has fulfilled minimum of ends of W.1 - W.3
requirements for measured from
completion. beginning of W.2
W.5 Look for termination When the extreme of PRICE
when W.5 has completed Wave 3 is exceeded the
W.5 = 62% 100%
at least five fractals in maximum stop loss 162% W.1
lower time frame and is should be raised to Wave
If W.3 extended
in a coincidence of Price 4. W.5= 62% or 38%
and Time. of W. 0-3
When four fractals are in W.5=127%, 162%,
W.5 has made new price place for Wave 5 trailing 200%, 262% W.4
extreme and price and stops should be moved
the Oscillator are very close to the market. TIME
diverged. W.5 > W.4 if W.4 is
If Wave 4 has exceed a simple ABC
>50% of Wave 3, the W.5 < W.4 if W.4 is
th
possibility of a 5 wave complex
failure is increased.

W.A Usually a five wave Caution required after PRICE

pattern but can be three. first three waves Between 38% - 50%
complete. May be only 3 of prior W.5
See W.1 description for of 5.
the impulsive triangle TIME
pattern that can also Assume the first five N/A
occur as a W.A wave structure is the W.A
of an A-B-C pattern.
W.B Usually a three wave Wait for at least a 50% PRICE
pattern. retracement of related > 50% < 78.6% of
W.A before entering a W.A
trade
TIME
> 50% < 100% of
W.A time
W.C Classically W.C is a five If W.C. exceed 162% of PRICE
wave pattern. W.A the labelling is W.C. usually 62%
probably wrong. The 100% 162% of W.A
current pattern is
probably impulsive. W.C 162% 200%
262% of W.B

W.C. rarely > 262%

W.B

TIME
Use Time guidelines
for complete A-B-C
corrective pattern.