If you’ve ever looked at a stock chart and felt like you were staring at a Rorschach test, is the definitive decoder ring.
A corrective pullback that never goes beyond the start of Wave 1.
Wave 4 can never enter the price territory of Wave 1.
Frost and Prechter did not invent the Fibonacci ratio, but they integrated it into Elliott Wave more thoroughly than any previous authors. The relationship between waves is expressed via the golden ratio (0.618, 1.618, 2.618, etc.).