Profitable execution relies on combining wave structures with Fibonacci ratios. This allows you to project precise price targets and invalidation levels. Common Fibonacci Target Practical Application Retraces 50%, 61.8%, or 78.6% of Wave 1 High-probability entry zone Wave 3 Extends to 161.8% or 261.8% of Wave 1 Primary profit-taking zone Wave 4 Retraces 23.6% or 38.2% of Wave 3 Re-entry zone for the final push Wave 5 Equals Wave 1, or extends to 61.8% of Waves 1-3 Final trend exit target 4. Execute High-Probability Trading Strategies
: Wave 3 can never be the shortest of the three motive waves (Waves 1, 3, and 5). It is usually the longest.
Place your stop-loss order at the exact price point that invalidates your wave count.
learned that markets move in repetitive cycles driven by human emotion—fear and greed. Poser’s "story" for the market was simple: a five-wave in the direction of the trend, followed by a three-wave Correction . Instead of guessing,
The bottom of Wave 4 must remain higher than the peak of Wave 1. If the correction drops so deep that it overlaps with the Wave 1 high, the impulse structure is invalidated. 4. The Corrective Phase: Waves A, B, and C
