Elliott Wave Cheat Sheets
This is a list of other helpful sources on Elliott Wave Theory
Elliott Wave Extensions (in
- The simplest definition of an
extended wave is an impulse wave
where the smaller degree internal waves
demonstrates obviously visible wave
amplitudes along with the wave
degree in observation. In so doing,
that internal wave structure dramatically extends
the higher degree wave beyond what
would be its
normal expected length. They are
elongated, sometimes dramatically,
by the extension of the internal
Extended waves may also extend.
See wave 1-2/1-2 structures for more
- Extension occur in impulse waves only.
Therefore, corrective waves A and C may
- Almost all impulse waves have one extended
internal wave (1, 3, or 5).
Rarely two waves (3 and 5) will
extend. Never will all three
- 80% of the
time, it is wave 3 that will
extend. Wave 5 is the next most
frequent, then wave 1.
- Wave 1, having no
predicted length, requires you
analyze the internal structure before declaring it to be extended.
If internal wave 1.3 is greater than
1.618 times wave 1.1, it is
- It is typical
for waves 3 and 5 both to extend
when they are of Cycle or
- Often the extended wave is
the same wave as its parent
wave. In a larger degree
wave 5, for example, it is more
common that sub-wave 5 extend.
Structure of Extensions
- With extensions, the number of
sub waves for the entire impulsive wave can resolve to 9 or 13
(double extension) most normally.
- Extensions may occur within extensions
- Acceleration gaps frequently occur in a Wave 3 extension and a second gap.
At times, an exhaustion gap offers some prediction
you are nearing the end of a wave.
Knowing this, scanning for gaps can help you hone in on stocks that are in the middle of an extension.
- Because the extension of a wave typically represents
exuberance in the market, they tend
to create a very steep price run. And
frequently exhibit a series of "humps" on the chart for the multiple 1-2's and 3-4's that occur in the internal structure.
- Once you have determined that an extension is occurring, there is only one way to trade it, which is the direction of
the wave. Enter the trade and ride it out. You won't be sorry.
The following applies to all
extensions, but is based on
observations of a third wave of a
It is practically impossible to
trade the corrections of an
extension. They don't last long,
they frquently don't retrace near
what you are expecting (it is very
hard to identify the wave degree in
the extensions) and, at times,
the seem to be shortened versions of
the typical A, B, C waves.
What you think is wave A is often
times the entire retracement, leaving
you looking like an idiot when the
trend resumes and you are still
waiting for another swing.
When the extended wave is over, you
will know it and will still show
more profit than if you tried
to trade the corrections. Just
don't do it!
- Perhaps it is not apparent,
but there are a couple of key
areas where you should pay
attention to the wave structure.
When a short correction after 5
takes back off and clears the
wave 5 you know the wave count
will now go to 9. You can
stay in the trade until then.
By the same analysis, when a
short correction after 9 takes
back off and clears the wave 9
pivot you now know you are going
to 13. If you have been
able to mark the 1-2,1-2
sequence(s) at the beginning of
the chart, this gives
confirmation to that labeling.
- Additionally if you happen
to note an acceleration gap, use
the measuring gap rules to at
least approximate the end of the
© Bata4u.com - All rights reserved. | Design: HTML5 UP