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I can provide clear examples of how to apply these rules to your specific charts. Share public link
| Relationship | Common Ratio | Notes | | :--- | :--- | :--- | | | 50%, 61.8%, 78.6% | Common retracement levels for Wave 2. | | Wave 3 vs. Wave 1 | 1.618, 2.618, 4.236 | The most common relationship; Wave 3 is often 1.618x Wave 1. | | Wave 4 vs. Wave 3 | 14.6%, 23.6%, 38.2% | Wave 4 retracements are typically shallow. | | Wave 5 vs. Wave 1 | 1.0, 1.618, or 0.618 | Often equals Wave 1 in length or is 0.618x the length of Waves 1 through 3. | | Wave C vs. Wave A | 1.0, 1.618, 2.618 | Common length of Wave C compared to Wave A in a correction. |
The initial rally or sell-off. It represents the early buyers entering the market as sentiment begins to shift.
I can provide clear examples of how to apply these rules to your specific charts. Share public link
| Relationship | Common Ratio | Notes | | :--- | :--- | :--- | | | 50%, 61.8%, 78.6% | Common retracement levels for Wave 2. | | Wave 3 vs. Wave 1 | 1.618, 2.618, 4.236 | The most common relationship; Wave 3 is often 1.618x Wave 1. | | Wave 4 vs. Wave 3 | 14.6%, 23.6%, 38.2% | Wave 4 retracements are typically shallow. | | Wave 5 vs. Wave 1 | 1.0, 1.618, or 0.618 | Often equals Wave 1 in length or is 0.618x the length of Waves 1 through 3. | | Wave C vs. Wave A | 1.0, 1.618, 2.618 | Common length of Wave C compared to Wave A in a correction. |
The initial rally or sell-off. It represents the early buyers entering the market as sentiment begins to shift.