In most Elliott Wave impulses, one of the three motive waves (W1, W3, or W5) is dramatically longer than the other two, typically 1.618 times or more. This is the wave extension. The extended wave has its own clearly visible 5-wave sub-structure, while the non-extended waves are often similar in length to each other. W3 extension is by far the most common in modern markets. W5 extension appears regularly in commodities. W1 extension is rare, usually seen in parabolic late-cycle moves.
← Back to Studies...
...