Elliot Correction Wave A-B-C (How To Draw)
How to Construct A-B-C wave ?
The corrective wave sequence A-B-C has following Fibonacci rules:
Wave –A this is 0.618 retracement of the prior wave it must be against the prior trend. (Example: Trend was up)
Wave –B this is 0.618 retracement of wave – A and may expand till 1.272 retracement of the wave –A
Way To Get This Levels:
Wave A- To get Fib ret level- go from start of prior trend up(low point to high point on chart)- Price will drop to 0.618 level.
Wave B- To get 0.618 level - Take highest point on chart to bottom of A- price should retrace to Wave B level- this is a sell area which may expand to 1.272 level noted on Fib ret tool over example chart.
Please practice with how to construct 1-2-3-4-5 impulsive waves and how to construct A-B-C- waves on different time charts- if you are a beginner charts over 1 hour will be easier to see and practice on.. Look for entries during high liquidity and volume times of session- or in between end of Tokyo close to London close.
The corrective wave sequence A-B-C has following Fibonacci rules:
Wave –A this is 0.618 retracement of the prior wave it must be against the prior trend. (Example: Trend was up)
Wave –B this is 0.618 retracement of wave – A and may expand till 1.272 retracement of the wave –A
Way To Get This Levels:
Wave A- To get Fib ret level- go from start of prior trend up(low point to high point on chart)- Price will drop to 0.618 level.
Wave B- To get 0.618 level - Take highest point on chart to bottom of A- price should retrace to Wave B level- this is a sell area which may expand to 1.272 level noted on Fib ret tool over example chart.
Please practice with how to construct 1-2-3-4-5 impulsive waves and how to construct A-B-C- waves on different time charts- if you are a beginner charts over 1 hour will be easier to see and practice on.. Look for entries during high liquidity and volume times of session- or in between end of Tokyo close to London close.