Free Elliott Wave Strategies

Fifth Elliott Wave Extensions are special Elliott wave phenomenon.

Indeed, the extendable Elliott waves are the first, third and fifth Elliott

waves without forgetting the motive wave itself.  The objective of this

writing is to explain how and when the fifth Elliott wave extensions occur;

but also to teach day or swing traders and investors how to trade or

forecast the fifth Elliott wave extensions.

Image = a graph showing a regular fifth Elliott wave extension.

Notice the fifth sub-wave extension of the fifth wave itself 

in a smaller rectangle.

 
Determinants Of Elliott Wave Extensions

1/ strong fundamentals that adjust with the predominating bullish market

opinion bullish trends),
2/ deteriorating financials in a bearish market context (bearish trends),
3/ unexpected bullish or bearish earnings release or economic news,
4/ super bullish or bearish cycle that is pushing a distinct sector or the

global economy,
5/ money flow or transfer of wealth from one segment of the world to

another,
6/ innovation or revision of management unit,
7/ natural disasters, and
8/ distortions or market manipulations.

Why The Fifth Elliott Wave Extensions

a/
Aside from the prime factors, which can drive a motive wave beyond

its usual boundaries, the fifth wave stretches beyond its natural frontiers

if both the first and third waves did not stretch.
Such is the prime technical factor that causes an extended fifth Elliott wave.

Indeed, intelligent Elliott wave practitioners agree that one of the three

motive waves will extend. Consequently, if neither the first nor the third

extends, the fifth Elliott wave is likely to extend.

Warning

See that is not a rigorous science, but simply a guide in the untidy financial

markets.  Evidently, it is a huge likelihood expectation, although one will not

believe anything.

b/
An extra agent that produces the fifth wave extension is a lengthy fourth

wave. Anytime, a shallow fourth Elliott wave becomes too long, or

one remarked variety of triangle (abcde wave chart pattern), one may

await an extended fifth Elliott wave.

Deeper Understanding Of The Fifth Wave Extensions

It is fundamental to grasp why that is usually the case. In the occurrence

of abcde wave chart pattern or triangle, Elliott traders and additional market

members acknowledge that the bullish trend is not over yet. Consequently,

as the fourth wave shifts into a consolidation in a configuration of a triangle,

it generates a frenzied accumulation hot spot trading zone. Both bulls and

buying orders (trading volume) rush to
a maximum level.
A precise bullish trade setup is at once unmistakable to nearly all bullish

traders. Undoubtedly, nothing will hinder the fifth Elliott wave extensions.

Ending Diagonal (type of fifth wave extension)

One more word for that fifth Elliott wave extension is the ending diagonal.
The structure of the ending diagonal occurs in the fifth Elliott wave.
The internal waves' structure is (3, 3, 3, 3, 3). The ending diagonal is an

elaborate fifth Elliott with five unusual internal waves. Though, it is a motive

wave; its internal waves subdivide into threes as a substitute of fives.

Moreover, the whole fifth wave stays in a directional triangle.
In addition, a few relate to it as a wedge.

View the charts

Image = graph showing both a rising

and declining ending diagonal in the fifth

 Elliott wave.

 
 Essential Details

At any time, the last portion of a particular price pattern is a triangle;

such a thing ordinarily designates a possible reversal trading setup.

Indeed, the fifth Elliott wave is the last play of a particular price structure

i.e.: the motive wave. Consequently, a sharp correction often gets under

way on the completion of the ending diagonal.

If one is trading after a bullish ending diagonal, the minimum bearish target

is the root (starting point) of the fifth wave.

Mastering The Ending Diagonal

Whenever the price action from the first wave to fourth is too fast (price

travels at a high speed too far), the fifth Elliott wave is prone to be an ending

diagonal.

In fact, if there is a suitable representation for dumb money, that will be it.

Dumb money is the money that one applies to buy an asset at the time just

when market movers are busy distributing. The contrast is also valid whenever

one is selling (to hold) at the point where large financial institutions are

accumulating.

Similarly, if one invests in a firm at the time when the stock displays a rising ending

diagonal, one has definitely dumped money. In Reality, dumb money is dumped

money. Sometimes, investors also sell just as a bearish stock shows a negative

slope ending diagonal. The typical victims, in this case, are long-term investors

who lost patience as the bearish term is about to close.

Ending diagonals are terminal patterns that flag an imminent reversal.

The Truths About The Ending Diagonal

a/ ending diagonal frequently appears after the fourth Elliott wave if the price

advances or declines extremely fast and too far during wave one to four,
b/ once a rising ending diagonal is moving, smart investors that acknowledge

that the asset is now overbought, begin to divest or sell steadily,
c/ once a declining ending diagonal is moving, smart investors that acknowledge

that the asset is now oversold, begin to accumulate or buy steadily,
d/ rising ending diagonal points to a distribution,
e/ declining ending diagonal points to an accumulation,
f/ an ending diagonal is a contraction
that accompanies a wild expansion (price runs too far too fast),
g/ internal waves (3, 3, 3, 3, 3) reflect the unknown correction that is even now

underway (distribution that is occurring throughout the fifth bullish wave).
h/ rising ending diagonal is likewise a rising wedge,
i/ a rising wedge is not regularly an ending diagonal,
j/ a falling ending diagonal is also a falling wedge, but a falling wedge is not

invariably an ending diagonal,
k/ ending diagonal is a complex extended fifth Elliott wave,
l/ fifth Elliott wave extension is a complex wave,
m/ fifth Elliott wave extensions are not always ending diagonal,
n/ internal waves (3, 3, 3, 3, 3) reflect the unknown correction that is even

now underway (accumulation that is occurring throughout the fifth bearish wave).


Fifth Wave Extensions Forecast

At this point, one can surely forecast the fifth Elliott wave extensions by checking if
both the first and third Elliott waves did not extend. In all instances, one will

analyse the fundamentals and implement the trading triangle.

Furthermore, one is likewise equipped to predict if the fifth wave extension is destined

to be an ending diagonal or not by considering the price action from wave one to

four. Apart from the present techniques, one will further gain mastery in forecasting

the fifth wave by viewing the ensuing video tutorial.

View the video

Title:  How To Forecast The Fifth Elliott Wave

Description:  Learn exactly how to predict the fifth Elliott wave.
Understand the correct procedure to determine
the end of the last impulse wave.  Get started.

The fifth wave extension is highly rewarding Elliott wave phenomenon. It is the latest
lap of the motive wave (that leaves the best part in the end). Actually, one cannot bear

to miss it. As numerous uninformed financial market traders anticipate an untimely

reversal, a swift frenzied fifth Elliott wave extension begins. Various market partakers

may suffer substantial losses particularly during a regular extended fifth wave extension,

(that is not an ending diagonal). 

Indeed, by mastering the fifth Elliott wave extensions, one can evade trading and investment
mistakes and gain from the financial markets.