A Fibonacci target depends on what it is measured from: which distance is measured, and where is it placed? A measures how far a wave pulls back. An takes the length of one wave and places it at the end of another. The ranges are rules of thumb from Elliott analysis, not laws – prices also run beyond them or turn earlier.
Impulse: waves 2 to 5
Wave 2: 50–78.6% of wave 1, usually 61.8–78.6%. Wave 3: length of wave 1 from the end of wave 2, at least 100%, usually 161.8–223.6%. Wave 4: 23.6–50% of wave 3. Wave 5: 38.2–61.8% of the distance from the start of wave 1 to the end of wave 3, placed at the end of wave 4.
Correction: A, B and C
Wave A retraces 38.2–50% of the previous impulse. In a zigzag, B comes back 38.2–78.6% of A, usually 61.8%; in a flat at least 88.7%, often 138.2%. Wave C is the length of A, placed at the end of B: in a zigzag 61.8–161.8%, in a flat 61.8–261.8%, most often 100% in both.
What our rule uses from this
The buy zone 61.8–78.6% is the most common range for wave 2. The targets 161.8% and 685.4% are the wave 3 measurement: length of wave 1, placed at the end of wave 2. With cryptos further ranges occur, such as wave 2 up to 88.7%; our rule calculates there with the same numbers as for stocks.