A three-category Fibonacci filter for wave setups

Three equal categories

Wave pattern, Fibonacci time, and Fibonacci price ratio are treated as three equal categories. A setup is complete only when each category satisfies the Fibonacci framework.

Pattern-time-ratio is the equal-weight checklist that runs those three tests on the same setup: elliott-wave form, a fibonacci-time-cycle count, and a fibonacci-retracement or extension. The three tests are not ranked. Time does not outrank ratio, and pattern does not outrank time.

Series, ratios, and three-wave-completion

The working fibonacci-series is 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and 233. Fibonacci-time-cycle counts use those week lengths, including 13, 21, 34, 55, 89, and 233. The three operational ratios taken from the series are 0.618, 1, and 1.618. Fibonacci-retracement work measures a correction or extension as one of those three ratios of a prior wave.

Elliott-wave reading splits bull and bear phases into major and intermediate legs that must complete a required wave count. Three-wave-completion is the pattern rule: a bull or bear phase should show three intermediate legs before a larger-degree turn is treated as confirmed.

When only two categories confirm

If only two of the three categories confirm, the method still allows a position. That two-of-three-fit is treated as weaker and calls for a less aggressive commitment. The third category is still required before the setup is described as complete.

How the illustrations applied the three categories

The hog illustration marked a completed three-category fit when a 61.8 percent retracement of the first major advance coincided with an 89-week count from the March 1980 lows. The hog second-advance objective used a ratio at least equal to the first major wave and was aligned with a 34-week cycle. A later down-leg was measured at 1.618 times the preceding down-leg and then retraced 61.8 percent.

The bond illustration paired a second advance of 1.618 times the first with a 13-week cycle reentry. It then used a 55-week count described as 34 plus 21 as the completed three-category fit. A brief 13-week low penetration was not treated as full invalidation because only two up-legs had formed.

Soybeans showed an unusual third major down-wave measuring 61.8 percent of the second, with lows on 5-year and 8-year Fibonacci cycles. A later 61.8 percent retracement of the first new up-leg landed exactly on a 21-week cycle low.

The gold illustration showed a completed decline of three major down-waves, with the second equal to the first and the third 1.618 times the second. The next advance topped on a 34-week cycle from the price lows after a 55-week cycle was briefly exceeded.

In each case the archive is showing coincidence among pattern, time, and ratio, not a ranking of the three tests.

Mutual checks and category-invalidation

Pattern, time, and ratio are used as mutual checks. Any category that is penetrated or fails to complete is treated as immediate category-invalidation of the hypothesis.