Using the basis of Eliot wave analysis in combination with Fibonacci ratios, in particular 1.618x and 2.618x, gives powerful tool in target setting of the bull phases of market cycle.
For the bull market 1994-2000 wave 3 target set by 2.618x projection of wave 1 was 1065. As seen on the chart the target was surpassed. This is not exception for wave 3 as it is the strongest in the cycle. After the correction (wave 4) 1.618x projection of wave 3 gives target for the final wave 5. The chart shows that S&P exactly hit the target level 1549 set by this method.
Find more on this target setting method at www.capitalhubs.com/p/forecasting.html
For the bull market 1994-2000 wave 3 target set by 2.618x projection of wave 1 was 1065. As seen on the chart the target was surpassed. This is not exception for wave 3 as it is the strongest in the cycle. After the correction (wave 4) 1.618x projection of wave 3 gives target for the final wave 5. The chart shows that S&P exactly hit the target level 1549 set by this method.
Find more on this target setting method at www.capitalhubs.com/p/forecasting.html