As of 09/25/2020
  Indus: 27,174 +358.52 +1.3%  
  Trans: 11,270 +152.52 +1.4%  
  Utils: 808 +12.20 +1.5%  
  Nasdaq: 10,914 +241.29 +2.3%  
  S&P 500: 3,298 +51.87 +1.6%  
YTD
-4.8%  
 +3.4%  
-8.1%  
 +21.6%  
 +2.1%  
  Targets    Overview: 09/14/2020  
  Up arrow28,650 or 26,000 by 10/15/2020
  Up arrow11,750 or 10,600 by 10/01/2020
  Up arrow845 or 775 by 10/01/2020
  Up arrow11,800 or 10,400 by 10/01/2020
  Up arrow3,600 or 3,200 by 10/01/2020
CPI (updated daily): Arrows on 8/18/20
As of 09/25/2020
  Indus: 27,174 +358.52 +1.3%  
  Trans: 11,270 +152.52 +1.4%  
  Utils: 808 +12.20 +1.5%  
  Nasdaq: 10,914 +241.29 +2.3%  
  S&P 500: 3,298 +51.87 +1.6%  
YTD
-4.8%  
 +3.4%  
-8.1%  
 +21.6%  
 +2.1%  
  Targets    Overview: 09/14/2020  
  Up arrow28,650 or 26,000 by 10/15/2020
  Up arrow11,750 or 10,600 by 10/01/2020
  Up arrow845 or 775 by 10/01/2020
  Up arrow11,800 or 10,400 by 10/01/2020
  Up arrow3,600 or 3,200 by 10/01/2020
CPI (updated daily): Arrows on 8/18/20

Bulkowski on Wave One Extension Elliott Wave Pattern

 

This page describes the wave one extension pattern of the Elliott wave principle, how price moves not in a straight line but in a series of rises and retracements.

 

The wave one extension in a bull market. The figure to the right shows what a wave one (first wave) extension looks like in a bull market. An extension is an unusually long impulse wave with exaggerated subwaves, according to Frost and Prechter.

Many impulses contain only one extension in their actionary subwaves. That is, only one of the waves 1, 3, or 5, will be extended. When an extension occurs, it will likely occur during wave 3. The subwaves within an extended wave have nearly the same duration and amplitude.

Four subwaves join the five wave impulse to complete the extension. I show this as four waves in black followed by five waves in red in the chart above. Knowing that wave one extends suggests waves three and five will be normal length.

 

The wave one extension in a bear market. The chart on the right is the same as the prior one but the wave occurs in a bear market. Again, black shows the four wave extension leading to the five wave impulse in red.

Wave One Extension Rules

The wave one extension has rules that govern its shape. They are listed here.

-- Thomas Bulkowski

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See Also

 

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My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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