Here is 5minute Bitcoin from late January -
The standard method I use is to capture individual impulse or corrective waves, other than when I have a clear, well defined Elliott Wave pattern and trying to target a end of Wave 3, 4 or 5 since there is already prior defined waves to use - which unfortunately or maybe fortunately depending on ones viewpoint most of the time in most markets, most timeframes there isn't a clear well defined EW present.
So IOW I don't necessarily plot fibs from a major/minor swing high to low or vice versa, that most would think to use.
View attachment 334344 First image shows a target area (cyan oval) to look to go short if fibs confirm, but fib retracement drawn from swing high at top of the move landed much lower than where price reached. Though 23.6% level (not shown) lined up really good with prior lower swing high congestion zone it was no help for this area.
Second image has a fib ret drawn from top of wave 2 down to wave 3 bottom with 38.2% landing @ 41457. I also added a 2nd fib ret to intermediate wave which lands @ 41532
View attachment 334345
Targeted swing was @ 41532 so intermediate fib ret was dead on, but even though 1st fib ret of full wave was not as close, keep in mind a symbol trading around $41500+ a difference of $75 is less than 0.2%.
One 5 minute bar closed above that level, then rest of the time stayed below all the way down.
One last item I added, that also targeted swing high exactly, is a fib expansion (what many IMO incorrectly refer to as a fib projection). TradeStation doesn't do it intuitively like Dynamic Trader so it might a little hard to follow. I marked the two points FE. You take the range of the first impulse bar of a move, if there is one, and add to it (in this case an up move the high or subtract from down impulse bar' low for down move) 137.5% of range, and multiples of 137.5% thereafter. Note on chart image it shows 237.50%, 375.00% and 512.50%. Which is 137.5% + 100% (representing range) etc, etc.
You might be thinking, why 137.%?
degrees of a circle = 360°, then 360° * 38.2% = 137.52% so rounded 137.5%
This is referred by some as the Golden Angle:-
https://en.wikipedia.org/wiki/Golden_angle#:~:text=In geometry, the golden angle,the larger arc to the
For some reason the reciprocal 360° x 61.8% = 222.48% hasn't shown much effectiveness, to me at least.
But I only use this 137.5% ratio with initial impulse first bar(s) of a greater impulsive wave.
