📚Chapter 4 Glossary:
4.5 Motive Wave Multiples
📖 4.6 Corrective Wave Multiples
Corrective Wave Multiples for an A-B-C Correction Overview
"How to Calculate the wave lengths for waves ABC"
1) In a correction (go back to chapter 3.1 if you don't know what a correction is), the length of wave C is usually the same length and equal to that of wave A, as shown in Diagram ①. But other ratios like the 161.8% (again, commonly referred to as the 1.618 fib) or the 61.8% (.618 fib), also happens within its structure for determining the length of wave C.
2) This specific ratio can also be applied to the first and the second in a WXY 'double correction' that can be seen in Diagram ②.
3) In diagram ③, we have a that can also be measured via Waves A,B,C - which are quite equal; however, the extended from the beginning of Wave B to Wave C has different ratios applied. In this case, wave C often represents the 161.8% (1.618 fib) extension of wave A.
NOTE: the concept of measuring the waves should always be the second part when analyzing the markets. Do not expect to correctly measure a target for a wave, if the overall count is not valid and rules were broken. The fibonacci numbers are complementary applied to the theory.
THANK YOU! Refer to every chapter below, and happy learning. In future posts, we will be learning how to apply them in a PRACTICAL sense to the real markets! But first, we must memorize these chapters by heart as these chapters are the foundation to the whole Theory.