Elliott Wave Impulse Detection with Fibonacci-Based Trade Levels

Summary

This document describes a chart indicator that attempts to identify the first two waves of an Elliott Wave impulse and map potential levels for a subsequent move. It finds swing highs and lows with a ZigZag-style pivot process, then checks whether the second wave retraces one of several Fibonacci proportions of the first wave within a configurable tolerance. A direction check and duplicate-pattern filter further constrain which setups are accepted.

For a matched pattern, the indicator plots an entry trigger, an invalidation stop at the start of Wave 1, a suggested trailing stop, and four Fibonacci-extension targets based on the Wave 2 length. Its pivot sensitivity, retracement tolerance, and entry threshold can be adjusted. The document provides implementation code and parameter descriptions, but no backtest, performance data, or market-specific validation. Pivot-based wave counts can change as new prices arrive, and Fibonacci matches alone do not establish that a setup will succeed.

Key ideas

• A ZigZag-style process identifies structural highs and lows used to form candidate waves.
• Wave 2 is accepted only when its retracement is near one of several specified Fibonacci ratios.
• The indicator derives an entry trigger and stop levels from the detected wave structure.
• Four projected targets use Fibonacci extensions of the Wave 2 distance.
• The document provides no performance evidence, and pivot-based patterns may be revised as prices evolve.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.