Elliott Wave Calculator
Calculate Elliott Wave fibonacci projections for waves 3, 5, and corrective ABC targets. Enter values for instant results with step-by-step formulas.
Calculator
Adjust values & calculateElliott Wave Rules
Formula
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.
Last reviewed: December 2025
Worked Examples
Example 1: Wave 5 Fibonacci Projection
Example 2: Elliott Wave Rule Validation
Background & Theory
The Elliott Wave Calculator applies the following established principles and formulas. Foreign exchange markets facilitate the conversion of one currency into another and serve as the largest and most liquid financial markets in the world, with daily turnover exceeding seven trillion US dollars. Exchange rates are quoted as currency pairs, expressing the price of one unit of a base currency in terms of a quote currency. For example, a EUR/USD rate of 1.0850 means one euro buys 1.0850 US dollars. The smallest standardized price movement in most pairs is the pip, typically the fourth decimal place, with a value of 0.0001 per unit for USD-denominated pairs. The bid price is the rate at which a dealer will buy the base currency, while the ask price is the rate at which it will sell. The spread between bid and ask represents the dealer's compensation and varies with liquidity and volatility. Leverage amplifies both gains and losses by allowing traders to control positions larger than their deposited margin. A 100:1 leverage ratio means a one-percent adverse move eliminates the entire margin, making position sizing and risk management critical. Two parity conditions from international economics anchor exchange rate theory. Purchasing Power Parity (PPP) holds that exchange rates should adjust over time so that identical goods trade at equivalent prices across countries: S = P_d / P_f, where S is the spot rate and P_d and P_f are domestic and foreign price levels. PPP performs well over long horizons but poorly in the short run due to trade barriers, non-tradable goods, and capital flows. Covered Interest Rate Parity (CIRP) is a near-arbitrage condition stating that forward exchange rate premiums or discounts exactly offset interest rate differentials between two currencies: F/S = (1 + r_d) / (1 + r_f). Deviations from CIRP create riskless arbitrage opportunities that traders rapidly eliminate. Uncovered Interest Rate Parity posits that high-yielding currencies should depreciate to offset their interest advantage, though empirical evidence is mixed and the carry trade — borrowing in low-rate currencies to invest in high-rate ones — has generated persistent returns.
History
The history behind the Elliott Wave Calculator traces back through the following developments. For much of the nineteenth century and early twentieth century, the international monetary system operated under the classical gold standard, under which each participating currency was fixed to a defined weight of gold, making bilateral exchange rates effectively constant. The system provided price stability and facilitated global trade but constrained governments' ability to respond to economic downturns. World War One shattered the gold standard as nations suspended convertibility to finance wartime expenditures. The interwar period saw attempts to restore gold convertibility, most notably the British return to the gold standard in 1925 at the pre-war parity, a decision criticized by John Maynard Keynes as deflationary. The Great Depression forced widespread currency devaluations and the effective collapse of the international gold standard by the early 1930s. The Bretton Woods Conference of July 1944 established a new order in which member currencies were pegged to the US dollar, while the dollar alone was convertible into gold at 35 dollars per troy ounce. The International Monetary Fund and World Bank were created at the same conference to oversee the system. Bretton Woods delivered exchange rate stability during the postwar growth era but came under strain as US deficits and European dollar accumulation outpaced American gold reserves. On August 15, 1971, President Nixon announced the suspension of dollar-gold convertibility — the so-called Nixon Shock — effectively ending the Bretton Woods system. By 1973, major currencies had transitioned to floating exchange rates determined by market supply and demand, a regime that has persisted. On September 16, 1992, hedge fund manager George Soros shorted the British pound against the European Exchange Rate Mechanism constraints, forcing the UK's withdrawal in what became known as Black Wednesday. Electronic trading platforms emerged in the 1990s and 2000s, replacing voice-brokered interbank markets and dramatically reducing transaction costs for institutional and retail participants alike.
Frequently Asked Questions
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.
References
Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy