Constructing a price-time Fibonacci window for the ABC correction

Build the pullback from the finished impulse

A completed price swing of any size is treated as the originating swing. That swing is read as attempting a Fibonacci retracement of 50% to 61.8% of its own range.

Elliott wave analysis treats the finished impulse as this measuring swing and the following pullback as a constructed correction until that geometry fails. An ABC correction is the three-phase countertrend construction used here. Its halt and secondary-reaction stations sit on retracement and momentum geometry. They are not named after the move is over.

Copy the same ratio onto price and time

An equal-momentum retracement consumes the same fraction of price and of calendar time, so its average speed matches the originating swing. Build an equal-momentum 50% or 61.8% price-and-time point by applying the same ratio to both the swing’s price range and its calendar-day length, then offsetting those amounts from the swing extreme.

Add the twice-momentum first ray

The first retracement attempt is constructed at twice the originating swing’s momentum or faster. A twice-momentum retracement keeps the 50% price level but uses only 25% of the originating swing’s calendar-day span. The rest of the price correction is constructed at the originating swing’s momentum.

A momentum line is the ray from the swing extreme through a constructed retracement point. That ray later serves as a path and as support or resistance.

Mark the correction window

The forecast frame is the pair of momentum lines from the swing extreme to the twice-speed and equal-speed 50% points, plus a correction window bounded by the equal-speed 50% and 61.8% price-time points. That correction window is the constructed landing zone for the ABC correction.

Place the halt loci without dating each station

Six halt loci, labeled A1 through E, can be placed by drawing rays from the swing start through fixed fractions of the swing’s price range, without separately computing each locus’s calendar date. Those stations are where a retracement may pause or throw a secondary reaction.

The construction fractions pair Fibonacci-related price percentages with correction-time percentages, including 23.6% with 61.8% and 33.3% with 50%.

Read correction momentum against the originating swing

If the correction’s momentum exceeds twice the originating swing, a broader trend change is to be suspected. If correction momentum is at or below the originating swing, the pullback is expected to finish early as a sign of trend strength.

Keep this geometry on corrections only

The geometry is specified only for countertrend corrections. After the correction is judged finished, a different construction is required because trending paths are drawn differently.