Fibonacci Ratios

2026.05.09

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Ratio Relationships (Fibonacci) is an Elliott Wave guideline stating that subwaves within the same wave tend to be in Fibonacci ratio relationships. It is a still-developing area of study. The most important ratios are 0.382, 0.618, and 1.618, and care must also be taken with easily misused non-Fibonacci ratios.

Overview

The most important Fibonacci ratios are 0.382, 0.618, and 1.618. These are derived from the golden ratio and appear frequently in the relationships between Elliott Wave subwaves.

On the other hand, 0.764, 0.786, 1.236, 1.382, and 3.618 are not Fibonacci ratios. These numbers are sometimes mistakenly treated as “Fibonacci ratios” in the context of technical analysis, but they are not actually ratios derived from the original Fibonacci sequence — caution is needed.

Points where multiple ratio relationships overlap at the same price level have a higher probability of becoming reversal points. For count verification, it is also effective to check whether the entire impulse can be divided at the end of wave 4 into a ratio close to the golden ratio (0.382:0.618).

Illustrated Chart

① Classification of Fibonacci ratios (true vs. false) — Click to expand
Most important Fibonacci ratios 0.382 0.618 1.618 Other main Fibonacci ratios 0.236 2.618 4.236 ⚠ Not Fibonacci ratios (misuse warning) 0.764 0.786 1.236 1.382 3.618 * The red-framed values appear frequently in technical analysis but are not actual Fibonacci ratios.
A classification chart of Fibonacci ratios. Gold frames are true Fibonacci ratios (most important / other), and red frames are non-Fibonacci ratios that tend to be misused. In Elliott Wave analysis, it is important to use the correct ratios.
② Count verification: Golden-ratio division at end of wave 4 — Click to expand
S 1 2 3 4 5 0.382 0.618 End of wave 4 divides at golden ratio 0.382:0.618
The entire price range of the impulse (from S to end of wave 5) is divided by the end of wave 4 in the golden ratio of 0.382:0.618. A pattern often observed when the count is correct. An important indicator for count verification.
How to read the diagrams: ① visually distinguishes the correct Fibonacci ratios (gold) from misuse-warning ratios (red). ② shows, with dimension lines, how the entire price range is divided in the golden ratio at the end of wave 4.

Detailed Points

  1. Most important: 0.382, 0.618, 1.618

    These are the core Fibonacci ratios derived from the golden ratio. They are observed most frequently in Elliott Wave analysis.

  2. Other main ratios: 0.236, 2.618, 4.236

    Not as important as the core ratios, but the main Fibonacci ratios used in Elliott Wave analysis.

  3. NOT Fibonacci ratios: 0.764, 0.786, 1.236, 1.382, 3.618 (caution!)

    These numbers are sometimes mistakenly treated as Fibonacci ratios in technical analysis, but they are not actually ratios derived from the original Fibonacci sequence. Caution is needed when using them.

  4. Points where multiple ratio relationships overlap have a higher probability of being reversal points

    When multiple targets from different Fibonacci ratios overlap at the same price level, that point has a high probability of becoming a trend reversal point.

  5. Count verification: check whether the end of wave 4 divides the structure close to the golden ratio (0.382:0.618)

    If the end of wave 4 divides the entire price range of the impulse close to 0.382:0.618, the count can be judged to be consistent with the golden-ratio guideline.

Ratio Relationships: Wave 3 Extension Case
The size of wave 3 typically targets 1.618×, 2.618×, or 4.236× wave 1.
Ratio Relationships: Wave 5 Extension Case
When wave 5 extends, wave 5 typically targets 1.618× the size from wave 1 start to wave 3 end.
Ratio Relationships: Wave 1 Extension Case
When wave 1 extends, the size from wave 2 end to wave 5 end typically targets 0.618× wave 1.
Depth of Corrective Wave (Previous Fourth Wave)
The correction of wave 4 in an impulse tends to target the range of subwave 4 of the previous wave (wave 3). There are also guidelines for retracement ratios of each corrective wave.

Summary

Ratio Relationships (Fibonacci) is a guideline stating that Elliott Wave subwaves tend to be in Fibonacci ratio relationships — a still-developing area of study.

The most important ratios are 0.382, 0.618, and 1.618; others include 0.236, 2.618, and 4.236. On the other hand, 0.764, 0.786, 1.236, 1.382, and 3.618 are not Fibonacci ratios, so caution is needed against misuse. Points where multiple ratio relationships overlap have a high probability of becoming trend reversal points, and the 0.382:0.618 division at the end of wave 4 can be used as an indicator for count verification.

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