As of 11/26/2021
  Indus: 34,899 -905.04 -2.5%  
  Trans: 16,216 -610.57 -3.6%  
  Utils: 907 -15.90 -1.7%  
  Nasdaq: 15,492 -353.57 -2.2%  
  S&P 500: 4,595 -106.84 -2.3%  
YTD
 +14.0%  
 +29.7%  
 +4.9%  
 +20.2%  
 +22.3%  
  Targets    Overview: 11/12/2021  
  Up arrow38,000 or 35,000 by 12/01/2021
  Up arrow17,700 or 16,000 by 12/01/2021
  Up arrow935 or 890 by 12/01/2021
  Up arrow16,400 or 15,350 by 12/01/2021
  Up arrow4,850 or 4,560 by 12/01/2021
CPI (updated daily): Arrows on 11/17/21
As of 11/26/2021
  Indus: 34,899 -905.04 -2.5%  
  Trans: 16,216 -610.57 -3.6%  
  Utils: 907 -15.90 -1.7%  
  Nasdaq: 15,492 -353.57 -2.2%  
  S&P 500: 4,595 -106.84 -2.3%  
YTD
 +14.0%  
 +29.7%  
 +4.9%  
 +20.2%  
 +22.3%  
  Targets    Overview: 11/12/2021  
  Up arrow38,000 or 35,000 by 12/01/2021
  Up arrow17,700 or 16,000 by 12/01/2021
  Up arrow935 or 890 by 12/01/2021
  Up arrow16,400 or 15,350 by 12/01/2021
  Up arrow4,850 or 4,560 by 12/01/2021
CPI (updated daily): Arrows on 11/17/21

Bulkowski on Wave Five Extension Elliott Wave Pattern

 

This page describes the wave five 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 five extension in a bull market. The figure to the right shows what a wave five (fifth 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 one, three, or five, will be extended. When an extension occurs, it will likely occur during wave three. The subwaves within an extension have nearly the same duration and amplitude as the ones in the rest of the wave. That means if wave five is extended, then the subwaves in wave five will resemble the subwaves in waves one and three.

Four subwaves join wave five to total five subwaves and complete the extension. I show wave five of higher degree as a red line and subwaves in black. Knowing that waves one and three are normal length, then it is a safe bet that wave five will extend (or you have counted wrong).

 

The wave five extension in a bear market. The chart to the right is the same as the prior one, but the wave occurs in a bear market. The extended wave five of higher degree appears in red (shown this way to highlight the wave length), but it really is composed of the black subwaves.

An extension can occur within an extension. For example, if wave five is extended, then subwave three within wave five can be extended. In other words, extended wave five will have nine subwaves instead of five.

 

Wave Five Extension Rules

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

-- Thomas Bulkowski

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See Also

 

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