Elliott waves and Fibonacci: a halfway retracement depends on the price calculation
Compare arithmetic and logarithmic interpolation with the same positive-price anchors.
Published: (UTC+3)
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A retracement label is incomplete without its anchors and calculation method. Drawing the same two positive prices on a logarithmic chart can produce a different intermediate level if the tool actually calculates the retracement in logarithmic space. Check the tool setting rather than assuming the chart scale determines it.
Fix the invented endpoints
Let the upward movement start at 100 and end at 200. For an arithmetic halfway retracement measured down from the high, calculate 200 − (200 − 100) × 0.5 = 150. This is halfway in price units. The 0.5 level is a familiar halfway marker, not an obligation for an Elliott correction.
Calculate halfway in logarithmic space
For positive endpoints, halfway between their logarithms corresponds to the geometric mean of their prices. In this example, sqrt(100 × 200) ≈ 141.421. The arithmetic and logarithmic constructions use the same endpoints but different interpolation methods. Their unequal answers are expected.
Check the actual drawing settings
Some tools distinguish the visible chart scale from a separate logarithmic-level option. Verify the documented behavior and inspect the numeric level displayed. If the software uses arithmetic interpolation on a logarithmic chart, its halfway price can still be 150. A curved visual distance is not a calculation specification.
Keep the interpretation limited
Record both endpoint timestamps, prices, calculation method and chosen level. A corrected drawing remains only a geometric reference. It does not confirm a wave label or predict that price must stop there. Compare calculations only when their methods and anchors match.
Why can the same 100-to-200 movement produce halfway levels of 150 and approximately 141.421?
The first is halfway in price units; the second is halfway in logarithmic space. The calculation method differs, even though the anchors are identical.