Figure 4-15

Figure 4-16 is an imaginary rendition of a reasonably ideal Elliott wave, complete with parallel trend
channel. It has been created as an example of how ratios are often present throughout the market. In
it, the following eight relationships hold:

[2] = .618 x [1];

[4] = .382 x [3];

[5] = 1.618 x [1];

[5] = .618 x [0] → [3];

[2] = .618 x [4];

in [2], (a) = (b) = (c);

in [4], (a) = (c);

in [4], (b) = .236 x (a)