Question on fibs
The 38 fib is the significant level for a wave 4 but what I was referring to earlier was the more common corrective waves. Sorry, I was probably waffling again and not being too lucid. For impulsive waves I'm looking for wave 2 to be 0.618 of wave 1; wave 3 to be a minimum of 1.618 of wave 1, if not it's probably an ABC and not an impulse move; wave 4 to be 38.2 of wave 3; and wave 5 to be 1.618 of wave 4. Apart from the minimum wave 3 these are guidelines and not set in stone.
The one thing to look for in an impulsive wave that is set in stone is divergence in the RSI between waves 3 and 5. If this doesn't exist then it is not an impulsive wave. This is not open to question or doubt and I am certain Mr Elliot himself would have used this had it existed in his day. Many times folk try and label a five wave impulsive move with no divergence and they are wrong. The RSI is the one indicator you must use when labeling EWT. Can you imagine how 'Teed-off' that guy would be to have missed the era of the PC!
I hope some of this helps.
