You can see on this chart the -1-2-1-2 pattern. The chart shows where to start for the two different beginning points. Use the same place to measure to and project from in both scenarios.

If it is done right you will find out that fibonacci lines up.

That is the wave (1)(2) 1.618 is the same of the lessor waves 2.382

2.382 ------------------------- 3.382

3.382 -------------------------

1.618 is the lessor wave three
2.382 is end of third wave
3.382 is end of fifth wave

When the wave is extended or has -1-2-1-2- pattern.

I show the projections in blue and black so you can see how it works.

By using this simple method one can make all the projections they need with just an handful of fibonacci numbers. They do not need to pull out Robert Miners Bible of Fibonacci and his software to calculate. Of course I must give him credit, because without his book I would have not got into Fibonacci.

Now on this chart you can see the red -1-2-. When you project off of that -1-2-. It only uses one number. 2.382. End of trend or target area. In smaller time frames, because often you can not distinquish the -1-2-1-2- patterns, or fifth wave failures, etc. The market will go 3.382 from what appears an -1-2- pattern. Very, very seldom on intraday data will you see a market go beyond 3.382 without an correction first. Of which you can measure the next wave -1-2- again for your next target.

I hope this illustration helps in understanding how to use an handful of fibonacci for all your predictions of markets third and fifth waves.

sillywaver
charleydan