WaveGenius.com.Elliott.Wave.Cheat.Sheet. .!

Forecast a W3 Target Price

Take the length of W1: Multiply it by 1.618

Add this to the low of W2 which must not exceed the low of W1

The result is a W3 target price

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Key$Fibonacci$Ratios

.618!="W2

1.618%="W3

2.618&="W3

.382!="W4

.786!="Breakout

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B.=..618 A

ZigZag%Formation

A.=.C B.=..618 C.is.rarely.1.618

C.=.A

WaveGenius.com.Elliott.Wave.Cheat.Sheet. .!Wave 1 or W1 The first wave up or down in a new trend…usually I measure how far this wave goes, wait for the wave 2, and from there, it gets easier as to how far the next move up or down goes.

Wave 2 or W2 The retracement of a down or up move…usually Wave 2′s retrace between .382, .500, . 618 and as much as .78 of the Wave 1, but can, at times retrace further, But CANNOT break the low of Wave 1.

Wave 3 or W3 The most powerful wave of a down or up move…usually this wave measures 1.618 X the length of Wave 1, and at times, 2X, 2.618X or as much as 3.5X

.382 Upward 4

The best way to stop a downtrend that has a clearly defined upward 2 and a clearly defined downward 3 that’s 1.618 X W1, is to get a retracement that moves .382 the distance of the downward.

This is a W4. Typically if it hits that .382 number on the nose, and does not exceed it by a large margin, the weakest wave, the 5th wave would be last part of the impulse, before a large reversal.

Wave 5 or W5 W5′s almost ceased to exist to the upside in the past few years, but occur very frequently these days to the downside. W5′s occur on this formation: W1, W2 = .618 of W1 up, W3 = 1.618 of W1 down, W4 = .382 of downward 3, and W5 -> Doesn’t hit the low of the 3 and retraces above the 4 (truncation), W1 equals W5 measured from top of W4, or .618 X W1 + W3 from the top of the W4 that was .382.

Wave A or just “A” The first wave in a downward or upward correction…Waves B and C follow.

Wave B or B An upward or downward correction that fakes out everybody, and can retrace between .382-.618 of “Wave A”…usually light volume tips it off.

Wave C or C The last wave in an upward or downward correction…this wave can be between .618 to 1.618X the length of Wave A.

WaveGenius.com.Elliott.Wave.Cheat.Sheet. .!

ZigZags

Zigzags form in an “ABC” pattern. A wave is the first wave down, B wave retraces . 618 of the A wave drop, and C wave is typically equal in length to Wave A. 80% trade setup on .786 breakout.

.786 breakout

After 5 waves down or an ABC zigzag pattern, the .786 breakout occurs if the rally off the low retraces .786 X length of corrective wave to the upside.

.618 support

Best trades are the Wave 1, Wave 2, Wave 3 pattern. W1 followed by a corrective W2 that holds .618 of the distance from the low of W1 to the high of W1 followed by a W2 move the retraces .786 of the entire W1 sets up a W3 which is an 80% trade setup

3 of 3 The BEST waves to go long on…high beta stocks rally like crazy on them 3 of 3 waves.

Previous Wave 4

The previous low point of the previous Wave 4 is where many corrections stop. A strong support level can be found at the low of the previous W4.

Ending Diagonal An Ending Diagonal formation is the crown jewel of all of the downtrend stoppers.

Every time I’ve seen one, the rallies end up being very powerful.