The first wave, a new impulsive price movement, tends to stop at the base of the previous correction, which normally is the B wave. This often coincides with a 38.2% or a 61.8% retracement of the previous correction.
Targets for wave 2
Wave 2 retraces at least 38.2% but mostly 61.8% or more of wave 1. It often stops at sub wave 4 and more often at sub wave 2 of previous wave 1. A retracement of more than 76% is highly suspicious, although it doesn?t break any rules yet.
Targets for wave 3
Wave 3 is at least equal to wave 1, except for a Triangle. If wave 3 is the longest wave it will tend to be 161% of wave 1 or even 261%.
Targets for wave 4
Wave 4 retraces at least 23% of wave 3 but more often reaches a 38.2% retracement. It normally reaches the territory of sub wave 4 of the previous 3rd wave.
In very strong markets wave 4 should only retrace 14% of wave 3.
Targets for wave 5
Wave 5 normally is equal to wave 1, or travels a distance of 61.8% of the length of wave 1. It could also have the same relationships to wave 3 or it could travel 61.8% of the net length of wave 1 and 3 together. If wave 5 is the extended wave it mostly will be 161.8% of wave 3 or 161.8% of the net length of wave 1 and 3 together.
Targets for wave A
After a Triangle in a fifth wave, wave A retraces to wave 2 of the Triangle of previous wave 5. When wave A is part of a Triangle, B or 4 it often retraces 38.2% of the complete previous 5 wave (so not only the fifth of the fifth) into the territory of the previous 4th wave. In a Zigzag it often retraces 61.8% of the fifth wave.
Targets for wave B
In a Zigzag, wave B mostly retraces 38.2% or 61.8% of wave A. In a Flat, it is approximately equal to wave A. In an Expanded Flat, it usually will travel a distance of 138.2% of wave A.
Targets for wave C
Wave C has a length of at least 61.8% of wave A. It could be shorter in which case it normally is a failure, which foretells an acceleration in the opposite direction.
Generally wave C is equal to wave A or travels a distance of 161.8% of wave A.
Wave C often reaches 161.8% of the length of wave A in an Expanded Flat.
In a contracting Triangle wave C often is 61.8% of wave A.
ลองมาดูตัวอย่างจริงจากกราฟ set รายชั่วโมงในปัจจุบันกัน ซึ่งตอนนี้เราอยู่ในคลื่น 3
Wave 2 retraces at least 38.2% but mostly 61.8% or more of wave 1. It often stops at sub wave 4 and more often at sub wave 2 of previous wave 1. A retracement of more than 76% is highly suspicious, although it doesn?t break any rules yet.
ดังนั้น ในบางกรณีอาจจะจำเป็นต้องใช้อัตราส่วนผลตอบแทนต่อเงินลงทุน (Return on Total Capital) ในการตรวจสอบความสามารถในการดำเนินงานของธุรกิจนั้น จะเหมาะสมมากขึ้น เนื่องจากได้รวมส่วนหนี้สินระยะยาวในการคำนวณไว้ด้วย