As of 11/29/2023   Indus: 35,430 +13.44 +0.0%     Trans: 14,817 +0.30 +0.0%     Utils: 862 -5.36 -0.6%     Nasdaq: 14,258 -23.27 -0.2%     S&P 500: 4,551 -4.31 -0.1%	YTD  +6.9%    +10.6%   -10.8%    +36.2%    +18.5%	Targets    Overview: 11/29/2023     34,500 or 36,400 by 12/15/2023   14,500 or 15,800 by 12/15/2023   900 or 825 by 12/15/2023   13,700 or 14,450 by 12/15/2023   4,450 or 4,650 by 12/15/2023
Chart Pattern Indicator: on 11/17/23

As of 11/29/2023   Indus: 35,430 +13.44 +0.0%     Trans: 14,817 +0.30 +0.0%     Utils: 862 -5.36 -0.6%     Nasdaq: 14,258 -23.27 -0.2%     S&P 500: 4,551 -4.31 -0.1%	YTD  +6.9%    +10.6%   -10.8%    +36.2%    +18.5%
Targets    Overview: 11/29/2023     34,500 or 36,400 by 12/15/2023   14,500 or 15,800 by 12/15/2023   900 or 825 by 12/15/2023   13,700 or 14,450 by 12/15/2023   4,450 or 4,650 by 12/15/2023
Chart Pattern Indicator: on 11/17/23

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 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 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.

• The wave one extension is a motive wave composed of nine sub waves, each appearing similar in shape and duration.
• If an extension occurs on wave one, then waves three and five will be normal waves, not extensions.
• Most impulse waves contain extensions (either wave 1, 3 or 5 will be extended).
• Wave 3 is the most commonly extended wave.

-- Thomas Bulkowski

See Also

• Here is the main resource for Elliott wave information.
• Support and resistance. Learn the various types.
• Market direction. 7 tips to determining.
• Trading cycles help time your entries and exits.
• Trend change detection using a triangle apex.

 

Support this site! Clicking any of the books (below) takes you to Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notice for paid links: "As an Amazon Associate I earn from qualifying purchases."

My novels:

My stock market books:

Copyright © 2005-2023 by Thomas N. Bulkowski. All rights reserved.

Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

Some pattern names are registered trademarks of their respective owners.

Home Advertise Contact Donate Privacy/Disclaimer ☰

If you are what you eat, I'm fast, cheap, and easy.