When wave 1 extends, the distance from the end of wave 2 to the end of wave 5 is typically 0.618× the length of wave 1.
Description
Wave 1 extensions are the least common. When wave 1 extends, the subsequent waves 2 through 5 (as a whole) tend to equal 0.618× the length of wave 1. This provides a target for the end of the entire impulse when wave 1 has extended.
Key Points
- Wave 1 extension: the distance from wave 2 end to wave 5 end ≈ 0.618× wave 1 length
- Wave 1 extensions are rare — most frequently seen in the first wave of a new bull market
- Waves 3 and 5 (the non-extended waves) tend to be equal in length
