3 Fibonacci Ratio Analysis With Elliott Wave

Learn To Trade Class #3
Plan Your Trade, Trade Your Plan
Fibonacci Ratio Analysis with Elliott Wa
1.618
Today we will learn how to combine Fibonacci
Ratio Analysis with EW for trading entries and exits.
We will begin at 7:30 PM ET You will hear no sound until we start
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 Pisano Bigollo (Leonardo Fibonacci)

circa 1170 to 1250 discovered the Fibonacci sequence
by breeding rabbits.
ibonacci #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 Einstein
1.618
Golden Ratio
FIBONACCI
FIBONACCI
1.000
0.618
FIBONACCI
FIBONACCI
0.382
0.618
Fibonacci
0.382
0.618

The Fibonacci Sequence
0, 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

retracement level)
(Major

0, 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
Once we cross the fourth set of fib #s the ratios
next higher #.
start to narrow down to the inverse of the Golden
Ratio
0.618
Example
: 2/3 = .6666
13/21 = .6190
89/144 = .6180
3/5 = .
6000
5/8 = .6250
8/13 = .6153
21/34 = 144/233
.
= .6180
6176
233/377 = .6180
34/55 = .6181
377/610 = .6180
55/89 = .6179

0, 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
Example
: 1/0
=0
5/3
= 1.666 34/21 = 1.619
the
Golden
Ratio
1.618
1/1 = 1 8/5
= 1.600 55/34 = 1.617
2/1 = 2.000 13/8 = 1.625 89/55 = 1.618
3/2 = 1.500 21/13 = 1.615 144/89 = 1.618

2.00
1.618
0.00
0.382
0.50
0.618
100.0
External Retracement
Expansions
-For exits on trend trades

-For entries on counter trend trade
Retracements
-For entries
ibonacci Retracements
Retracements ratios are

used to analyze
corrective Waves
38.2%
. by measuring
previous motive waves
61.8%
100%
100%
+ Helps determine
the completion of a
Correction
+ Serves as potential
Entry levels for
trades in the
direction of the
larger trend
Key Ratios
23.6%
38.2%
50.0%
61.8%
78.6%
5
0.00
Retracements
for Entry
1. Identify a completed
B 5-wave impulse & anticipate
0.382
a 3-wave correction
3
4
0.50
2. Measure
A
C
impulse wave
to define retracement levels
0.618
3. Watch for the end of
0.786
correction for entry
100.0
Motive Waves
Already Completed
Wave
Wave
Wave
Wave
1
3
A
W
Corrective Waves To
Study With
Retracements
Wave
Wave
Wave
Wave
2
4
B
X
Retracement
s
Retracement
s
Motive Wave
Tip
Quickly access
the Trading
Analysis Fib
ratios within
the wave count
Retracement
s
Motive Wave
Tip
Access the
default Fib
ratios from the
components
panel
External Retracements
127.2%
261%
Ext. Ret. ratios are

used to analyze motive
waves
. by measuring
previous corrective
waves.
+ Helps determine
the completion of a
motive wave
Exit levels for
trades in the
direction of the
larger trend
entry for contratrend trades
Key Ratios
127.2 %
161.8 %
200.0 %
261.8 %
423.6%
2.00
1.618
3?
B
2
A
C
Extensions for Exit
1. Identify a completed
1.272
correction & anticipate a
1.00
new impulse wave
0.6182.
Measure corrective wave

0.000to define extension levels
correction for entry
Corrective Waves
Already Completed
Wave
Wave
Wave
Wave
2
4
B
X
Motive Waves To
Study With
Extensions
Wave
Wave
Wave
Wave
3
5
C
Y
Ext.
Retracement
s
External
Retracements
Motive Wave
Tip
Quickly access
the Trading
Analysis Fib
ratios within
the wave count
External
Retracements
Motive Wave
Tip
Access the
default Fib
ratios from the
components
panel
Fibonacci Expansions
200%
Expansions are
used to measure motive
waves
. by measuring
previous motive &
corrective waves.
+ Helps 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.
entry on counter-trend
trades
Key Ratios
38.2 %
61.8 %
100.0 %
161.8 %
200.0 %
261.8 %
423.6%
1.618
Expansions for Exit
1. Identify
1.000
5Click 2
3
2
Click 1
B
A
Click 3
C
a completed
Motive & Correction &
anticipate a new 5-wave
0.618
motive.
2. Measure (click) the 3
0.000
end points of the Motive
& Corrective Wave.
the Motive wave at
Expansions ratios for exit.
Corrective Waves
Already Completed
Wave 1,2
Wave 3,4
Wave 1-3
Wave A,B
Wave W,X
Any 2 adjacent
waves in a
triangle
Motive Waves To
Study With
Extensions
Wave 3
Wave 5
Wave 5
Wave C
Wave Y
Waves C, D, E
Expansions
Expansions
Motive Wave
Tip
Quickly access
the Trading
Analysis Fib
ratios within
the wave count
Expansions
Motive Wave
Tip
Access the
default Fib
ratios from the
components
panel
A Fib zone is at least two Fib

ratios in close proximity to each
other
Combine all Fib tools:
retracements, extensions &
projections to calculate a Fib Zone
F.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
Building A Fib
Zone

3 Fibonacci Ratio Analysis With Elliott Wave

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3 Fibonacci Ratio Analysis With Elliott Wave

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Learn To Trade Class #3

Plan Your Trade, Trade Your Plan

Fibonacci Ratio Analysis with Elliott Wa

Fibonacci Pisano Bigollo (Leonardo Fibonacci)

ibonacci #s & Ratios

God does not play dice with the

ibonacci #s & Ratios

ibonacci #s & Ratios

Example : 1/2 = 0.50

ibonacci #s & Ratios

ibonacci #s & Ratios

ibonacci #s & Ratios

-For exits on trend trades

Retracements ratios are

Ext. Ret. ratios are

Extensions for Exit

Measure corrective wave

Expansions for Exit

A Fib zone is at least two Fib

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