The price distance of each wave is measured as a vertical distance from the begining of the wave to the end of the wave.The length is measured in price points or units.

Length of wave 1 and 2….

We start with the price distance of each wave.To be able to apply successfully Fibonacco Extension calculation we need to review this basic wave labeling relationship with price.

The price distance of each wave is measured as a vertical distance fron the begining of the wave to the end of the wave.The length is measured in price points or units.

Lenth of wave 1 and 2…

Length of Wave 3…

Length of Wave 4…

Length of Wave 5…

Now before we start on how to calculate a Fibonacci Extension’s acually are,How does it relate to Elliott wave theory…..

Fibonacco ratios are mathematical ratios derived from tshe Fibonacci sequence.The Fibonacci sequence is the work of leonardo Fibnacci,circa 11so ACE.The Fibonocci sequence is used in many applications,including engineering,space studies,stock market actions, and many other fields.

Fibonacci is a priven approach for measure price movement relationships.for Elliott Wave theorists,it means Fibonacci numbers are tools to help guide us in our interpretation where we think price movements will go,based on human’fear and greed’actions,reactions,or overreactions factors.

The most common Fibonacci ratios used in the stock markets are:

1 – 1.618 – 2.618 – 4.23 – 6.85 (multiples)

0.14 – 0.25 – 0.38-0.5&0.618.(ratios)

There are other numbers but these are the ones we tend to focus on for defining at least the short-term wave patterns.

Our ultimate goal here is to return to the question,”How do i calculate a fibonacci extension?”But we need to continue to work with some basic , yet very important information if we want to finally see how fibonacci extension calculations interplay in all this…

Hove you ever wondered why wave counts are labeled when and were?Do you wonder the same about wave projections?

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