Targets for wave 1
- Tends to stop at the BASE of the PREVIOUS correction,
which normally is the B wave.
- This OFTEN coincides with a 38.2% or a 61.8% retracement
of the previous correction.
Targets for wave 2
- Wave 2 retraces at least 38.2%
- but mostly 61.8% or more of wave 1.
- It often stops at sub wave 4 and
- more often at sub wave 2 of previous wave 1.
- A retracement of more than 76% is highly suspicious,
although it doesn’t break any rules yet.
Targets for wave 3
- Wave 3 is at least equal to wave 1, except for a Triangle.
- If wave 3 is the longest wave it will tend to be 161% of wave 1 or even 261%.
Targets for wave 4
- Wave 4 retraces at least 23% of wave 3
- but more often reaches a 38.2% retracement.
- It normally reaches the territory of sub wave 4 of the previous 3rd wave.
- In very strong markets wave 4 should only retrace 14% of wave 3
Targets for wave 5
- Wave 5 normally is equal to wave 1,
- or travels a distance of 61.8% of the length of wave 1.
- It could also have the same relationships to wave 3
- or it could travel 61.8% of the net length of wave 1 and 3 together.
- If wave 5 is the extended wave it mostly will be 161.8% of
wave 3 or 161.8% of the net length of wave 1 and 3 together.
Targets for wave A
- After a Triangle in a fifth wave, wave A retraces to wave 2
of the Triangle of previous wave 5.
- When wave A is part of a Triangle, B or 4 it often retraces 38.2%
of the complete previous 5 wave (so not only the fifth of the fifth)
into the territory of the previous 4th wave. In a Zigzag it
often retraces 61.8% of the fifth wave.
Targets for wave B
- In a Zigzag, wave B mostly retraces 38.2% or 61.8% of wave A.
In a Flat, it is approximately equal to wave A.
In an Expanded Flat, it usually will travel a distance of 138.2% of wave A.
Targets for wave C
- Wave C has a length of at least 61.8% of wave A.
- It could be shorter in which case it normally is a failure,
which foretells an acceleration in the opposite direction.
- Generally wave C is equal to wave A or travels a distance of 161.8% of wave A.
- Wave C often reaches 161.8% of the length of wave A in an Expanded Flat.
- In a contracting Triangle wave C often is 61.8% of wave A.
Targets for wave D
- In a contracting Triangle wave D often travels 61.8% of wave B.
Targets for wave E
- In a contracting Triangle wave E often travels 61.8% of wave C.
- It cannot be longer than wave C!
Targets for wave X
- Wave X minimally retraces 38.2% of the previous A-B-C correction;
- a retracement of 61.8% is also common.