Elliott Wave Extensions (in general)

  • Extension occur in impulse waves only. Therefore, corrective waves A and C may extend. 
  • Almost all impulse waves have one extended internal wave (1, 3, or 5).  Rarely two waves (3 and 5) will extend. Never will all three waves extend.
  • 80% of the time, it is wave 3 that will extend. Wave 5 is the next most frequent, then wave 1.
  •  Wave 1, having no predicted length, requires you analyze the internal structure before declaring it to be extended.  If internal wave 1.3 is greater than 1.618 times wave 1.1, it is technically extended.
  • It is typical for waves 3 and 5 both to extend when they are of Cycle or Supercycle degree.
  • Often the extended wave is the same wave as its parent wave.  In a larger degree wave 5, for example, it is more common that sub-wave 5 extend.

Structure of Extensions

  • With extensions, the number of sub waves for the entire impulsive wave can resolve to 9 or 13 (double extension) most normally.
  • Extensions may occur within extensions (Double Extension).  
  • Acceleration gaps frequently occur in a Wave 3 extension and a second gap.  At times, an exhaustion gap offers some prediction you are nearing the end of a wave.  Knowing this, scanning for gaps can help you hone in on stocks that are in the middle of an extension.
  • Because the extension of a wave typically represents exuberance in the market, they tend to create a very steep price run. And frequently exhibit a series of "humps" on the chart for the multiple 1-2's and 3-4's that occur in the internal structure.
Wave 3 Double Extension