The corrective phase moves against the main trend. It acts as a consolidation period before the larger trend resumes.
Elliott wave structures naturally exhibit Fibonacci relationships—one of the key reasons the theory has gained such widespread acceptance. The ratios between wave lengths, retracements, and extensions often conform to the golden ratio (approximately 1.618) and its derivatives. In fact, Chapter Three of Elliott Wave Principle has been described as "the best description of Fibonacci numbers we've seen in print and that alone is worth the price of the book". elliott wave principle robert prechter pdf free