Latest posts

    Ethereum – Secret bear flag! (70% crash target)

    March 31, 2023

    Bitcoin is retesting a trendline from 2013! (right now)

    March 29, 2023

    Bitcoin – No one talks about this trendline, last wave up!

    March 27, 2023
    Telegram RSS
    • My TradingView
    • Best way to trade futures
    • Best way to trade spot
    • The holy grail of trading
    • The game changer
    Telegram RSS
    Tolberti
    • Home
    • Education
      1. Motivation & Strategy
      2. Technical Basics
      3. Candlesticks
      4. Chart patterns
      5. Indicators
      6. FIbonacci
      7. Elliott wave
      8. Harmonic patterns
      9. View All

      What is drawdown in Trading

      December 2, 2022

      Trading Psychology and its Importance – Tips For a Winning Mindset

      November 2, 2022

      As a trader you need to stay disciplined!

      November 2, 2022

      How to Create a Successful Trading Plan – Step-By-Step Guide

      November 2, 2022

      Price action trading strategies that you need to know

      November 2, 2022

      Support and Resistance – A basic concept of technical analysis

      November 2, 2022

      Technical analysis explained – What is it and how does it work?

      November 2, 2022

      The most common mistakes technical analysts make

      November 2, 2022

      Candlestick Patterns – Complete Guide to Bearish and Bullish Candlesticks

      November 2, 2022

      Rising three methods

      August 11, 2022

      Falling three methods

      August 11, 2022

      Spinning top

      August 11, 2022

      Rising & Falling Wedge

      January 20, 2023

      Bullish Pennant

      January 20, 2023

      Bull Flag

      January 20, 2023

      Head and Shoulders

      January 20, 2023

      OBV – On-Balance Volume

      December 2, 2022

      Market Profile – A Complete Guide

      November 2, 2022

      Ichimoku cloud

      August 18, 2022

      Moving average (MA)

      August 18, 2022

      Fibonacci and Market Analysis

      August 13, 2022

      4 mistakes that Traders should avoid while Trading with Fibonacci

      August 13, 2022

      Why Fibonacci Series is important for Technical Analysis

      August 13, 2022

      A complete overview on trend and theory of retracement

      August 13, 2022

      Elliott Wave Cheat Sheet: All You Need

      August 14, 2022

      Elliott Wave Theory: Complex guide

      August 14, 2022

      Elliott Wave: All About How To Count

      August 14, 2022

      Leading And Ending Diagonal: How To Trade Them

      August 14, 2022

      Alternate bat pattern

      October 1, 2022

      The List of All Known Harmonic Patterns & Ratios

      October 1, 2022

      Cypher pattern

      September 1, 2022

      ABCD pattern

      August 13, 2022

      Rising & Falling Wedge

      January 20, 2023

      Bullish Pennant

      January 20, 2023

      Bull Flag

      January 20, 2023

      Head and Shoulders

      January 20, 2023
    • Technical analysis

      Ethereum – Secret bear flag! (70% crash target)

      March 31, 2023

      Bitcoin is retesting a trendline from 2013! (right now)

      March 29, 2023

      Bitcoin – No one talks about this trendline, last wave up!

      March 27, 2023

      Shiba Inu – 23% crash, best opportunity! (long-term outlook)

      March 25, 2023

      Bitcoin – The bottom is not in! 15k or 10k (careful)

      March 23, 2023
    • Info
      • Crypto news
      • Crypto converter
      • Crypto exchanges
      • My TradingView
      • Best way to trade futures
      • Best way to trade spot
    • Contact
    • My books
    • Join premium channel
    Tolberti
    Home»Education»Elliott wave»Extension wave
    Elliott wave

    Extension wave

    By TolbertiAugust 11, 2022No Comments
    Facebook Twitter Telegram WhatsApp Reddit Pinterest Email
    Share
    Facebook Twitter Telegram WhatsApp Reddit Pinterest Email

    We can face with an extension in the most impulses in a position of motive waves. Generally, an extension is an extended impulse structure with enlarged waves inside, which are almost the same height and length as the other waves of the impulse. So, if a usual impulse has a five-wave structure, an impulse with an extension in one of the motive waves subdivides into nine waves.

    Where an extension occurs?

    Only in the motive waves, so we could find an extension in the first, the third and the fifth wave of an impulse. The most impulses have an extension only in one of the motive waves, most commonly in the third wave. From time to time we could face with two extensions inside a single impulse, but that’s a pretty rare case. Also, during a long and strong trend, it’s possible to have an extension inside another extension, which is called a multi-extension.

    An extension and other impulse’s waves

    If the third wave an extension forms, then the fifth wave will likely be quite the same as the first wave. If the first and the third waves are about the equal amplitude, the fifth wave could be extended. It’s obvious that it’s just impossible to have an extension in both waves one and five because in this case wave three turns out to be the shortest, which violates the main rules.

    So, let’s say, you try to count a developing extension in the third wave, for example. Because of all the motive and corrective waves are nearly the same, you could have few other wave counts at hand. Sometimes, it’s not easy to choose the best scenario to be the main one. The best thing to do in a moment like this is just to pick up a wave scenario with a relatively modest prediction.

    An extension and correction patterns

    As you already know, we could have an extension in the motive waves only. However, sometimes it’s possible to observe something like an extension inside a zigzag. In this cases, one of the motive waves (A and C) of the pattern is much longer than another. There’s no any mention about an extension inside zigzags in the book ‘Elliott Wave Principle: A Key to Market Behavior’, but sometimes such a disproportion between waves A and C takes place.

    Examples

    The chart below represents an impulse with a huge extension in wave ((3)), which subdivides into five waves, which are quite the same as waves ((1)), ((2)) and ((5)). As you can see, after wave ((4)) we had a tiny price movement in the fifth wave. In most cases, it’s likely that if you have wave three more than 1.618 multiple of wave one, there’s a green light for a relatively small wave five.

    Sometimes, the fifth wave of an impulse forms an extension, which occurs during massive rallies on the markets. As you can see from the next chart, wave (1) could be wave ((5)) itself, so only a three-wave decline and the subsequent pullback pointed out that the extension started. Moreover, a triangle in the wave (4) confirmed that there’s a developing impulse from the ending of the wave ((4)). Thus, we should be extremely careful with an extension in the fifth wave in the real-time wave counting.

    An extension in the first wave doesn’t form often. The next example shows a five-wave advance with the longest wave ((1)). Keep in mind, if the wave one is extending, wave three usually is smaller than wave one. In this case, in the absolute majority of cases, an impulse with extended wave one usually has the shortest wave five. The third wave can’t be the shortest, by the way.

    It also possible to have an extension on both waves one and three of an impulse, we can see this situation on the following chart. Waves ((1)) and ((3)) are much bigger than wave ((5)). Also, waves ((1)) and ((3)) have a very detailed structure, but wave ((5)) doesn’t.

    Another option is an extension in both waves three and five. It usually happens during a strong and long trend. As shown on the next chart, wave ((1)) is small while waves ((3)) and ((5)) are huge and we can see all subdivisions of these impulses.

    The trickiest type of an extension is a multi-extension. It usually forms on the stock market. During a multi-extension, we face with a lot of similar waves, so sometimes it’s pretty hard to do a wave count. The key to recognizing a multi-extension is a series of corrections, which form smaller and smaller one after another. If this happens, we could predict a multi-extension, but at the same time, we also should try to find alternate wave counts with fewer expectations. By doing this, we also could find the critical levels, which supposed to be red lines for a wave count with a multi-extension.

    The Bottom Line

    Extensions are an essential part of impulse waves. They happen all the time on all the markets. Moreover, in terms of trading, extensions bring the most interesting opportunities, but we also should always remember to keep risks at a reasonable level.

     

    Share. Facebook Twitter Telegram WhatsApp Reddit Pinterest Email
    Previous ArticleImpulse wave
    Next Article Hammer
    Tolberti
    • Website

    Professional trader and analyst. My specialization is in Elliott Wave Theory, Fibonacci tools, chart patterns, candlesticks, and price action. To analyze market structure, I use market profile and volume profile in my trading system. To analyze trends, I use trendlines, VWAP, and simple moving averages.

    Join premium channel
    Join Premium
    Random education
    Indicators

    Moving average (MA)

    TolbertiBy TolbertiAugust 18, 20220

    Simple Moving Averages Moving averages help us confirm and ride the trend. They are the…

    Indicators

    Bollinger bands (BB)

    TolbertiBy TolbertiAugust 18, 20220

    The Bollinger bands (BB) is a classic trend indicator developed by John Bollinger. His book Bollinger…

    Chart patterns

    Rounding Bottom

    TolbertiBy TolbertiJanuary 5, 20230

    What Is A Rounding Bottom Chart Pattern? In technical analysis, a rounding bottom pattern, also…

    Motivation & Strategy

    What is drawdown in Trading

    TolbertiBy TolbertiDecember 2, 20220

    Many new traders fail because they can’t withstand the pressure associated with market instabilities. They…

    Harmonic patterns

    Crab pattern

    TolbertiBy TolbertiAugust 13, 20220

    Harmonic Patterns are one of the powerful advanced price action techniques that are used to…

    Random analysis
    Technical analysis

    Bitcoin – Next week will be extremely bullish!

    TolbertiBy TolbertiNovember 6, 20220

    It looks like next week will be extremely bullish for Bitcon and also for the altcoins! Price…

    Technical analysis

    BTC and ETH are being pumped by Bogdanoff !

    TolbertiBy TolbertiJanuary 22, 20230

    The Bogdanoff twins claim they participated in helping Satoshi Nakamoto build Bitcoin . Igor and Grichka Bogdanoff…

    Technical analysis

    Ethereum – Secret bear flag! (70% crash target)

    TolbertiBy TolbertiMarch 31, 20230

    Ethereum shows a lot of weakness on the major timeframe. You can see that the…

    Technical analysis

    Bella BEL – Do not miss this altcoin!

    TolbertiBy TolbertiOctober 3, 20220

    Only 5% of people will catch this massive upcoming uptrend on BEL. Others will jump…

    Technical analysis

    Ethereum – Big overview of the bear market.

    TolbertiBy TolbertiJanuary 4, 20230

    The bears are in full control because ETH is below the two major trendlines and also below…

    Free technical analysis and education from a professional trader. Go to the "education" section and start learning immediately.

    💡Join my premium channel on Telegram (my trades, signals) - get access.

    ✅ 1 month: 49 USD
    ✅ 4 months: 99 USD
    ✅ 12 months: 149 USD
    ✅ Life Time: 249 USD

    Latest posts

    Ethereum – Secret bear flag! (70% crash target)

    March 31, 2023

    Bitcoin is retesting a trendline from 2013! (right now)

    March 29, 2023

    Bitcoin – No one talks about this trendline, last wave up!

    March 27, 2023
    Get Informed

    Subscribe to Updates

    Get the latest news about crypto, technical analysis and trading.

    Telegram RSS
    • Home
    • Education
    • Technical analysis
    • Info
    • Contact
    • Terms of use
    • My book
    • Join premium channel
    © 2023 Tolberti.com. All rights reserved.

    Type above and press Enter to search. Press Esc to cancel.

    This website uses cookies to give you the most relevant experience.
    Cookie SettingsAccept
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT