Time analysis in Elliott Wave: Fibonacci time ratios can project the duration of waves. Major turning points often occur at Fibonacci multiples of prior wave durations.
Description
Just as price movements tend to follow Fibonacci ratios, so do time durations. The duration of wave 3 may be 1.618× the duration of wave 1. Wave 5 durations may equal wave 1 or wave 3 durations. Fibonacci time projections are less reliable than price projections but add a useful dimension to wave analysis.
Key Points
- Fibonacci time ratios: the duration of waves often relates by 0.618, 1.0, or 1.618
- Wave 3 duration ≈ 1.618× wave 1 duration (most common relationship)
- Wave 5 duration often equals wave 1 or wave 3 duration (equality is common)
- Corrective wave duration: often 0.618× or equal to the prior actionary wave
- Time projections are less precise than price projections — use as a zone, not a specific date
- Combine with price targets for higher-confidence turning point identification
