8
Wave after wave
What topics are covered in this chapter?
This chapter will discuss the five Elliott waves and their corrections and how these can be measured in Fibonacci ratios. We consider:
- upward impulse waves
- downward impulse waves
- Fibonacci ratios.
What are the objectives?
We need to know about Fibonacci ratios and the concept of waves:
- To calculate the possibility of potential return versus expected losses (stop loss level).
- To determine if the risk is worth taking.
Introduction
The patterns on a chart can be seen as waves. A time series can be viewed as a series of wave after wave, and Elliott wave theory is one method of counting waves.1
According to Elliott, waves can be measure in multiples and fractions of the Fibonacci ...
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