Fibonacci
161.8% Extension
The most important Fibonacci extension level in Elliott Wave analysis. Wave 3 frequently extends to exactly 161.8% of Wave 1. This level serves as both a target for Wave 3 and a confirmation that an extension is underway.
EXAMPLE
Wave 1 moves from 1.0800 to 1.0900 (100 pips). The 161.8% extension projects Wave 3 to reach 1.0962 from the end of Wave 2.