Elliott Wave Calculator

Q: What are the three cardinal rules of Elliott Wave Theory?

Elliott Wave Theory has three inviolable rules that must be followed for a valid wave count. First, Wave 2 must never retrace more than 100 percent of Wave 1, meaning the end of Wave 2 cannot go below the start of Wave 1 in an uptrend or above it in a downtrend. Second, Wave 3 can never be the shortest of the three impulse waves (1, 3, and 5), and in practice Wave 3 is usually the longest and stro

Q: How do Fibonacci ratios relate to Elliott Wave projections?

Fibonacci ratios are deeply intertwined with Elliott Wave Theory because wave relationships consistently demonstrate Fibonacci proportions. Wave 2 typically retraces 50 percent to 78.6 percent of Wave 1 (both Fibonacci ratios). Wave 3 is often 161.8 percent of Wave 1 in length, which is the golden ratio extension. Wave 4 commonly retraces 38.2 percent of Wave 3. Wave 5 frequently equals Wave 1 in

Q: How do you project Wave 5 targets?

Wave 5 targets can be projected using several Fibonacci-based methods. The most common method uses Wave 1 as the reference: Wave 5 often equals Wave 1 in length (100 percent), or extends to 61.8 percent or 161.8 percent of Wave 1. To calculate, measure the length of Wave 1 and project the appropriate ratio from the end of Wave 4. A second method uses Wave 3 as reference: Wave 5 is often 38.2 perce

Q: What are corrective wave patterns and how do you identify ABC targets?

Corrective waves follow the five-wave impulse and typically unfold in three waves labeled A, B, and C. The simplest form is the zigzag (5-3-5 internal structure) where Wave C extends to 100 percent or 161.8 percent of Wave A. Flat corrections (3-3-5 structure) have Wave B approximately equal to Wave A, and Wave C equal to or slightly beyond Wave A. Triangle corrections contract with five overlappi

Q: What is the alternation principle in Elliott Wave Theory?

The alternation principle is a guideline stating that if Wave 2 is a sharp correction, Wave 4 will likely be a sideways or complex correction, and vice versa. This principle reflects the natural tendency of markets to alternate between different types of corrective patterns. For example, if Wave 2 is a deep zigzag retracing 61.8 percent of Wave 1, then Wave 4 might be a shallow flat or triangle co

Q: What are extended waves and which wave typically extends?

An extended wave is an elongated impulse wave with exaggerated sub-divisions, typically much longer than the other impulse waves in the sequence. In stock markets, Wave 3 is the most commonly extended wave, often reaching 161.8 percent to 261.8 percent of Wave 1. In commodity markets, Wave 5 extensions are more common. When Wave 3 extends, it often equals 1.618 times Wave 1 measured from the end o

Calculate Elliott Wave fibonacci projections for waves 3, 5, and corrective ABC targets. Enter values for instant results with step-by-step formulas.

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Formula

Wave 5 Target = Wave 4 End + (Wave 1 Length x Fibonacci Ratio)

Elliott Wave projections use Fibonacci ratios (0.618, 1.0, 1.272, 1.618, 2.618) applied to completed wave lengths to project future wave targets. Wave relationships must satisfy three cardinal rules: Wave 2 cannot retrace >100% of Wave 1, Wave 3 cannot be the shortest impulse wave, and Wave 4 cannot enter Wave 1 price territory.

Worked Examples

Example 1: Wave 5 Fibonacci Projection

Problem: Bullish impulse: Wave 0 = 100, Wave 1 end = 120, Wave 2 end = 112, Wave 3 end = 145, Wave 4 end = 135. Calculate Wave 5 targets.

Solution: Wave 1 length = 120 - 100 = 20 points\nWave 5 = 61.8% of Wave 1: 20 x 0.618 = 12.36, Target = 135 + 12.36 = 147.36\nWave 5 = 100% of Wave 1: 20 x 1.0 = 20, Target = 135 + 20 = 155.00\nWave 5 = 161.8% of Wave 1: 20 x 1.618 = 32.36, Target = 135 + 32.36 = 167.36\nWave 3 length = 145 - 112 = 33 points\nWave 5 = 61.8% of Wave 3: 33 x 0.618 = 20.39, Target = 135 + 20.39 = 155.39

Result: Wave 5 Targets: 147.36 (61.8%) | 155.00 (100%) | 167.36 (161.8%) | Cluster near 155 = high probability

Example 2: Elliott Wave Rule Validation

Problem: Check if this wave count is valid: Wave 0 = 100, Wave 1 = 120, Wave 2 = 115, Wave 3 = 138, Wave 4 = 119. Bullish impulse.

Solution: Rule 1: Wave 2 retracement = |115-120|/|120-100| = 5/20 = 25% (VALID, <100%)\nRule 2: Wave 1 = 20 pts, Wave 3 = |138-115| = 23 pts, Wave 3 > Wave 1 (VALID)\nRule 3: Wave 4 (119) vs Wave 1 end (120) - Wave 4 < Wave 1 end\nWave 4 at 119 enters Wave 1 territory (Wave 1 high = 120, low = 100)\nActually Wave 4 must not go below Wave 1 HIGH in bullish: 119 < 120 = VIOLATED\nThis wave count is INVALID - must be recounted

Result: INVALID COUNT | Wave 4 (119) overlaps Wave 1 territory (120) | Must recount

Frequently Asked Questions

What are the three cardinal rules of Elliott Wave Theory?

Elliott Wave Theory has three inviolable rules that must be followed for a valid wave count. First, Wave 2 must never retrace more than 100 percent of Wave 1, meaning the end of Wave 2 cannot go below the start of Wave 1 in an uptrend or above it in a downtrend. Second, Wave 3 can never be the shortest of the three impulse waves (1, 3, and 5), and in practice Wave 3 is usually the longest and strongest. Third, Wave 4 must not enter the price territory of Wave 1, meaning in a bullish impulse, the low of Wave 4 must stay above the high of Wave 1. If any of these rules are violated, the wave count is incorrect and must be re-evaluated. These rules are absolute and distinguish Elliott Wave from mere guidelines.

How do Fibonacci ratios relate to Elliott Wave projections?

Fibonacci ratios are deeply intertwined with Elliott Wave Theory because wave relationships consistently demonstrate Fibonacci proportions. Wave 2 typically retraces 50 percent to 78.6 percent of Wave 1 (both Fibonacci ratios). Wave 3 is often 161.8 percent of Wave 1 in length, which is the golden ratio extension. Wave 4 commonly retraces 38.2 percent of Wave 3. Wave 5 frequently equals Wave 1 in length or extends to 61.8 percent or 161.8 percent of Wave 1. For the corrective ABC pattern, Wave C often equals Wave A or extends to 161.8 percent of Wave A. These Fibonacci relationships allow traders to project price targets for upcoming waves based on completed wave measurements. The more Fibonacci relationships that cluster at a single price level, the stronger that level becomes as a target.

How do you project Wave 5 targets?

Wave 5 targets can be projected using several Fibonacci-based methods. The most common method uses Wave 1 as the reference: Wave 5 often equals Wave 1 in length (100 percent), or extends to 61.8 percent or 161.8 percent of Wave 1. To calculate, measure the length of Wave 1 and project the appropriate ratio from the end of Wave 4. A second method uses Wave 3 as reference: Wave 5 is often 38.2 percent, 50 percent, or 61.8 percent of Wave 3 in length. A third approach projects from the beginning of Wave 1 to the end of Wave 3, multiplying by 61.8 percent or 100 percent and adding to the Wave 4 endpoint. When multiple methods cluster at similar price levels, those levels carry higher probability. In extended fifth waves, the target may reach 261.8 percent of Wave 1.

What are corrective wave patterns and how do you identify ABC targets?

Corrective waves follow the five-wave impulse and typically unfold in three waves labeled A, B, and C. The simplest form is the zigzag (5-3-5 internal structure) where Wave C extends to 100 percent or 161.8 percent of Wave A. Flat corrections (3-3-5 structure) have Wave B approximately equal to Wave A, and Wave C equal to or slightly beyond Wave A. Triangle corrections contract with five overlapping waves. For ABC target projections, measure the full impulse move and apply Fibonacci retracement ratios. The most common corrective targets are 38.2 percent, 50 percent, and 61.8 percent retracements of the entire impulse. The nature of Wave 2 often determines Wave 4 through alternation, meaning if Wave 2 is sharp, Wave 4 tends to be sideways and vice versa.

What is the alternation principle in Elliott Wave Theory?

The alternation principle is a guideline stating that if Wave 2 is a sharp correction, Wave 4 will likely be a sideways or complex correction, and vice versa. This principle reflects the natural tendency of markets to alternate between different types of corrective patterns. For example, if Wave 2 is a deep zigzag retracing 61.8 percent of Wave 1, then Wave 4 might be a shallow flat or triangle correction retracing only 38.2 percent of Wave 3. Alternation also applies to the depth of corrections, the duration, and the complexity. While not a strict rule, alternation is a strong tendency that helps traders anticipate the character of upcoming corrective waves. Understanding alternation improves wave identification accuracy and helps set more realistic expectations for correction depth and duration.

What are extended waves and which wave typically extends?

An extended wave is an elongated impulse wave with exaggerated sub-divisions, typically much longer than the other impulse waves in the sequence. In stock markets, Wave 3 is the most commonly extended wave, often reaching 161.8 percent to 261.8 percent of Wave 1. In commodity markets, Wave 5 extensions are more common. When Wave 3 extends, it often equals 1.618 times Wave 1 measured from the end of Wave 2. Extended waves themselves contain five clear sub-waves that are easily visible on the chart. Only one of the three impulse waves typically extends, and the other two tend to be roughly equal in length and time. Identifying which wave is extending helps traders set appropriate targets and understand where they are in the overall wave structure.