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2011issue C1334-39

Construct a harmonic impulse from measured three-wave limbs

A five-wave swing that resembles a diagonal triangle can occupy wave A when waves (i), (iii), and (v) each develop in three waves. Fibonacci retracement and square-root-of-two wave relationships then confirm or reject that isolated move as a harmonic impulse in an A or C position.

  • A special wave A looks like a diagonal triangle, but waves (i), (iii), and (v) each develop in three waves rather than five.
  • A harmonic impulse wave can form only in an A or C slot, even though waves a and c are each built of five waves.
  • Fibonacci retracement at 38.2%, 50.0%, and 61.8%, plus projections at 161.8% and 261.8%, are the first wave relationships used to accept or reject the count.
  • Projection clusters for wave (iii) are formed by adding sub-100% Fibonacci and harmonic fractions onto 100%, 200%, and occasionally 300% or 400%.
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Current trackWave counting23 readingsElliott wave analysis94 readingsFibonacci retracement97 readings

Count the three-wave limbs first

A five-wave swing that looks like a diagonal triangle can appear in wave A. In that special wave A, waves (i), (iii), and (v) each develop in three waves rather than five.

From that internal three-wave construction, wave counting infers that an isolated five-wave move occupies only a wave A or wave C position. At the next higher degree, that Abc sequence can itself be one section of a larger five-wave sequence whose sections are all three-wave structures.

Limit the harmonic impulse to A or C

In the harmonic impulse wave, waves a and c are each constructed of five waves. The original impulse in Elliott wave analysis could occupy waves 1, 3, 5, A, or C. The harmonic version can form only A or C.

Applying Fibonacci relationships to a standard extending-wave count of this shape failed. Treating waves (i), (iii), and (v) as three-wave structures produced consistent projections and retracements. Those wave relationships are what confirm the layout.

Build the Fibonacci ladder

Popular Fibonacci retracement levels used for this construction are 38.2%, 50.0%, and 61.8%. Popular projections are 161.8% and 261.8%.

The same Fibonacci retracement methodology yields a ladder of ratios below 100%, including 5.6%, 9.0%, 14.6%, 23.6%, 33.3%, 38.2%, 50%, 61.8%, 66.6%, 76.4%, 85.4%, 90.0%, and 94.4%. Above 100% the ladder includes 161.8%, 261.8%, 423.6%, 685.4%, 1109.0%, and 1794.4%.

Inside a three-wave correction, a corrective C ratio is a Fibonacci or harmonic retracement or projection used to size wave (c).

Read projection clusters on wave (iii)

Trending projections commonly cluster around selected Fibonacci and square-root-of-two extensions. For wave (iii), ratios below 100% are added to 100%, 200%, and occasionally 300% and 400%. That produces a projection cluster with frequent targets such as 176.4%, 185.4%, 194.4%, 223.6%, 261.8%, 276.4%, 285.4%, and 295.4%.

Accept or discard the count

A five-wave decline in USD/CHF that a conventional count would treat as an extending wave 3 is instead confirmed or rejected by those wave relationships.

Subjectivity remains when waves (i) and (ii) are hard to identify. Requiring wave relationships still reduces subjectivity relative to the original structure and is presented as a stronger recognition framework for forecasting.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
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