Fibonacci Ratios: Wave 3 Extension

2026.05.09

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Ratio Relationships: Wave 3 Extension Case is an Elliott Wave guideline showing the ratio relationships among each wave when wave 3 of an impulse extends. The targets for wave 3 are set in three stages: 1.618×, 2.618×, and 4.236× wave 1.

Overview

This is the guideline for ratio relationships when wave 3 extends.

The wave 3 extension type is the most common form of impulse in Elliott Wave Theory. Using wave 1 as the reference, the ratio relationships of each wave — the target for the end of wave 3, the depth of corrective waves (waves 2 and 4), and the size of wave 5 — are all derived from the golden ratio.

Wave 3 has three target levels, extending in the order: 1st target (wave 1 × 1.618) → 2nd target (× 2.618) → 3rd target (× 4.236). Wave 5 is typically the same size as wave 1, but if not, its target is 0.618× or 1.618× wave 1.

Illustrated Chart

Ratio relationships of the wave 3 extension impulse (overall image) — Click to expand
1.000 1.000 S 1 2 3 4 5 Wave 2: 61.8% retrace of wave 1 Wave 3 (extended): wave 1 × 1.618 2nd target × 2.618 / 3rd target × 4.236 Wave 4: 38.2% retrace of wave 3 Wave 5: same size as wave 1 Ratio relationships of wave 3 extension impulse
A typical impulse with an extended wave 3. With wave 1 as 1.000, wave 2 is a 0.618 retrace of wave 1, wave 3 is wave 1 × 1.618 (extended), wave 4 is a 0.382 retrace of wave 3, and wave 5 is the same size as wave 1. The dimension lines show that waves 1 and 5 are equal in size.
Degree of wave 3 extension: three target levels — Click to expand
1.000 (wave 1) ×1.618 1st target ×2.618 2nd target ×4.236 3rd target Wave 3 extension: three target levels based on wave 1
When wave 3 extends, with wave 1 as 1.000, the targets are set in stages: × 1.618 (1st target) → × 2.618 (2nd target) → × 4.236 (3rd target). How far wave 3 extends depends on market energy.
How to read the diagrams: ① shows the overall ratio relationships in waveform. ② visualizes the three target levels for how far wave 3 may extend.

Detailed Points

  1. Wave 3 targets: wave 1 × 1.618 (1st) → × 2.618 (2nd) → × 4.236 (3rd)

    In the wave 3 extension type, the size of wave 3 has a 1st target of 1.618× wave 1, next 2.618×, and at most 4.236× wave 1.

  2. Wave 5 target: same size as wave 1, or otherwise 0.618× or 1.618× wave 1

    Wave 5 being the same size as wave 1 is the typical case. Otherwise, the targets are 0.618× or 1.618× wave 1.

  3. Wave 2 retracement depth: 0.618× wave 1

    The target for the wave 2 retracement is 61.8% of wave 1’s rise.

  4. Wave 4 retracement depth: 0.382× wave 3

    The target for the wave 4 retracement is 38.2% of wave 3’s rise.

Ratio Relationships (Fibonacci)
The tendency for subwaves within the same wave to be in Fibonacci ratio relationships. A guideline still under study.
Wave Equality
The tendency for two of waves 1, 3, and 5 of an impulse to be similar in rate of change and time length.
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: Wave 3 Extension Case is a guideline showing the ratio relationships of each wave in the most common form of impulse in Elliott Wave Theory.

With wave 1 as the reference, wave 3 extends in three stages of × 1.618 → × 2.618 → × 4.236, and wave 5’s target is the same size as wave 1. The retracement depth is 0.618× wave 1 for wave 2 and 0.382× wave 3 for wave 4. These ratios are core Elliott Wave guidelines based on the golden ratio.

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