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Written and copyright © 2008-2011 by Thomas N. Bulkowski. All rights reserved.
This page describes the unknown 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 an unknown extension looks like in a bull market. An extension is an unusually long impulse wave with
exaggerated subwaves, according to Frost and Prechter.
In an unknown extension, all of the subwaves appear similar in shape and duration
such that none of the waves can be identified.
The four subwave extension joins the existing five to total nine waves (waves one through five plus a four wave extension).
The chart shown on the right is the same as the prior one, but the wave occurs in a bear market. All of the subwaves appear similar in shape and duration making
identification of waves one, three, and five difficult.
Extension Rules
The wave unknown extension has rules that govern its shape. They are listed here.
- Nine subwaves compose the wave.
- Each subwave appears similar to the others making identification of waves one, three, or five difficult.
-- Thomas Bulkowski
Copyright © 2008-2011 by Thomas N. Bulkowski. All rights reserved. Stop repeat offenders. Don't re-elect them!
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