Depth of Corrective Wave (Previous Fourth Wave)

2026.05.09

🌐 日本語版 →

Depth of Corrective Wave (Previous Fourth Wave) is an Elliott Wave guideline stating that the correction of wave 4 in an impulse tends to target the range of subwave 4 of the previous wave (wave 3). Guidelines are also defined for the ratio relationships of each corrective wave type.

Overview

This guideline states that the price target for the wave 4 correction in an impulse often falls within the zone of subwave 4 of the one-degree-smaller wave 3 (= the previous fourth wave).

“Previous” in English means “the immediately preceding / one before,” and in Elliott Wave Theory it refers to “subwave 4 of the immediately preceding motive wave.” Because Elliott Waves have a fractal structure, the depth of the larger-degree wave 4 correction tends to overlap with the range of its smaller-degree internal wave 4 (the previous fourth wave).

In addition, there are Fibonacci-ratio-based guidelines for the correction depth of motive waves (waves 2 and 4), wave C of a zigzag, waves B and C of an expanded flat, and each wave of a triangle.

Illustrated Chart

① Previous Fourth Wave: Wave 4 correction targets the zone of wave 3’s subwave 4 — Click to expand
Previous fourth wave zone S 1 2 i ii iii iv 3 4 5 Larger wave 4 correction falls into the subwave 4 (iv) zone within wave 3
Subwaves (i–v) also exist within wave 3, and the zone of subwave 4 (iv) targets the correction depth of the larger-degree wave 4. Note that subwave 4 (blue) and the larger-degree wave 4 (red) lie on the same horizontal line.
② Motive wave correction depth: Wave 2 and Wave 4 retracement targets — Click to expand
S 1 2 3 4 5 Wave 2: 61.8% or 50% of wave 1 Wave 4: 38.2% of wave 3 Correction depth targets within a motive wave
The target for wave 2’s correction depth is 61.8% or 50% of wave 1. The target for wave 4’s correction depth is 38.2% of wave 3. The contrast between a shallow wave 4 and a deep wave 2 also connects to alternation (the tendency of corrective waves to differ).
③ Ratio relationships of each corrective wave type — Click to expand
Wave C of a zigzag A × 0.618 A × 1.000 A × 1.618 Wave B of an expanded flat A × 1.236 or A × 1.382 Wave C of an expanded flat A × 1.618 or A × 2.618 Triangle: each wave = previous wave × 0.618 C=A×0.618 D=B×0.618 E=C×0.618
Ratio relationships for each corrective wave type. Wave C of a zigzag has three targets; expanded flats have two targets each for waves B and C; in triangles, each wave is 0.618× the previous wave.
How to read the diagrams: ① shows the concept of the previous fourth wave, ② shows the retracement targets for waves 2 and 4 of a motive wave, and ③ lists the ratio relationships of each corrective wave type.

Detailed Points

  1. Wave 4 correction target = zone of wave 3’s subwave 4 (previous fourth wave)

    The correction of the larger-degree wave 4 often falls within the range of its smaller-degree internal wave 4 (the previous fourth wave).

  2. Wave 2 retracement target: 61.8% or 50% of wave 1

    The target for wave 2’s correction depth is 61.8% or 50% of wave 1’s rise.

  3. Wave 4 retracement target: 38.2% of wave 3

    The target for wave 4’s correction depth is 38.2% of wave 3’s rise.

  4. Zigzag wave C target: 0.618×, 1×, or 1.618× wave A

    Wave C of a zigzag has three targets relative to wave A (0.618×, 1×, 1.618×).

  5. Expanded flat wave B target: 1.236× or 1.382× wave A

    Wave B of an expanded flat extends beyond wave A, with a target of 1.236× or 1.382× wave A.

  6. Expanded flat wave C target: 1.618× or 2.618× wave A

    Wave C of an expanded flat targets 1.618× or 2.618× wave A.

  7. Triangle wave C target: 0.618× wave A; wave D: 0.618× wave B; wave E: 0.618× wave C

    In a triangle, each wave targets 0.618× the previous wave, contracting in turn. This is the typical ratio relationship of a contracting triangle in which amplitude gradually narrows.

Ratio Relationships (Fibonacci)
The tendency for subwaves within the same wave to be in Fibonacci ratio relationships. A guideline still under study.
Ratio Relationships: Wave 3 Extension Case
The size of wave 3 typically targets 1.618×, 2.618×, or 4.236× wave 1.

Summary

Depth of Corrective Wave (Previous Fourth Wave) is a guideline showing the correction depth of wave 4 in an impulse and the ratio relationships of each corrective wave type.

The wave 4 correction targets the zone of wave 3’s subwave 4 (previous fourth wave). In addition to the retracement targets within a motive wave — 61.8% or 50% of wave 1 for wave 2, and 38.2% of wave 3 for wave 4 — Fibonacci-ratio-based targets are also defined for each corrective wave type, including zigzags, expanded flats, and triangles.

📖 View details in the dictionary app →