Fibonacci retracements identify how far a corrective wave typically pulls back. The levels are based on the Fibonacci sequence and the golden ratio (1.618).
| Wave | Primary level | Secondary levels | Note |
|---|---|---|---|
| Wave 2 | 61.8% of wave 1 | 50.0% / 78.6% | Deep; may never reach 100% (core rule) |
| Wave 4 | 38.2% of wave 3 | 23.6% / 50.0% | Shallow; alternates with wave 2 (alternation guideline) |
| Wave B (zigzag) | 38.2–78.6% of wave A | 50.0% | May never exceed 100% |
| Wave B (flat) | ~100% of wave A | 105–138% (expanded) | Expanded flat: wave B above 100% = warning signal |