Elliott Wave Calculator

How to Use the Elliott Wave Calculator

The Elliott Wave Principle is a form of technical analysis that finance traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors.

1. Identify the Trend: Determine if the market is in a bullish (upward) or bearish (downward) trend.
2. Select Target Wave: Choose whether you want to calculate targets for Wave 3, Wave 5, or a retracement (Wave 2 or 4).
3. Enter Price Points: Input the starting and ending prices of the relevant waves (e.g., Wave 1 Start and End).
4. Analyze Targets: Review the calculated Fibonacci price levels. These often act as potential support, resistance, or reversal zones.

Understanding Elliott Wave Rules

There are three strict rules in Elliott Wave Theory that cannot be broken:

• Rule 1: Wave 2 cannot retrace more than 100% of Wave 1.
• Rule 2: Wave 3 can never be the shortest of the three impulse waves (1, 3, and 5). It is often the longest.
• Rule 3: Wave 4 can never overlap with the price territory of Wave 1.

Common Fibonacci Ratios in Elliott Wave

Elliott Wave targets are derived from Fibonacci ratios:

• Wave 2: Typically retraces 50%, 61.8%, 76.4%, or 85.4% of Wave 1.
• Wave 3: Typically extends 161.8%, 200%, 261.8%, or 323.6% of Wave 1.
• Wave 4: Typically retraces 14.6%, 23.6%, or 38.2% of Wave 3.
• Wave 5: Typically extends 61.8%, 100%, or 123.6% of Wave 1.

Why Use an Elliott Wave Calculator?

Calculating these targets manually can be time-consuming and prone to errors. Our free calculator instantly provides accurate price levels based on standard Fibonacci relationships, helping you plan your trades with precision.