Each Elliott wave pattern has its own common Fibonacci relationships between waves. You can use them to set your price targets and determine where the trend should reverse.
In other words, Fibonacci ratios are excellent tools to help you decide where to enter and exit your trades.
Learn more in this clip from Jeffrey Kennedy’s service for aspiring traders, Trader’s Classroom.
Note: To watch the complete lesson — and more lessons like this, free — be sure to join Jeffrey for “The 4 Best Waves to Trade — and How to Trade Them,” a free week-long event filled with lessons that will help you recognize and act on trade setups in your charts.