Elliott Waves and Fibonacci
In Nature's Law Ralph Elliott stated that the Fibonacci sequence is the mathematical basis for the Wave Principle. The Fibonacci summation series is the basis for the wave count in Elliott Wave Theory. There are 5 motive waves and 3 corrective waves in one complete cycle. Thus a complete cycle consists of 8 waves (5 motive waves and 3 corrective waves). The subordinate waves also reflect the Fibonacci summation series as 21 subordinate waves make up the motive wave (5-3-5-3-5) while 13 subordinate waves make up the corrective wave (5-3-5). Together they make 34 subordinate waves. The sum of the subordinate waves of a lesser degree will also end in a Fibonacci number.
Elliott Waves are also related by Fibonacci proportions. R.N. Elliott explained that both impulsive and corrective waves adhere to specific Fibonacci proportions, with the three motive waves tending to be related by Fibonacci ratios of equality, 1.618, or 2.618, while corrections often retrace to the 38.2% or 61.8% Fibonacci retracement levels of the preceding motive wave.