# Eliott Waves and Fibonacci

Wave 1 — Wave 1 is the one that breaks the last Tendency Line (TL).

Wave 2 — The reason for the relatively high retracement for Wave 2 is because Wave 1 just came out of a correction and there are still a lot of doubters.

Wave 3 — Wave 3 is usually the longest and sweetest wave and therefore Wave 4 retracement tends to be the shallowest.

Wave 4 — When a current Wave 4 is in progress and when the current Wave 4 is retracing more than 50%, the recommendation is to reevaluate the count.  The experience tells that Waves 4 that retraced more than 61.8% generally always go on to retrace more than 100% thereby invalidating the count.

Wave 5 —  If  Wave 4 retracts less then 50%, the one would expect the formation of Wave 5, which is typically 100% of Wave 1.

Reversão de alta para baixa por fundo descendente

Reversão de alta para baixa por topo descendente ou duplo

Reversão de baixa para alta por topo ascendente

Reversão de baixa para alta por fundo ascendente ou duplo

Categories:TA