Elliott Wave - Impulse with 5th wave extension
When ever if we see a 5th wave extending . We need to look at the following 1. Slope of wave 1 > wave 2 > wave 3 .
1.So trend channel will look like a megaphone pattern .
2. Wave 4 has to be deep becoz wave 4 will behave like wave 2 .
3. wave 5 may be 1:1 frm wave 1 to 3 extended from the end of wave 3 . (More on this later with a good example)
But most important
1. THE EXTENDED WAVE 5 SHOULD BE RETRACED BY AT LEAST .618% very fast and furious .
2. WAVE 5 SHOULD NOT BE COMPLETELY RETRACED IF THE IMPULSE HAS TO CONTINUE FURTHER .
So that way you will know stoploss . We will discuss trading edges later as I use 20/50 EMA and most top Ichimoku Kinko Hyo . I have sent a time cycle on this chart based on Ichimoku .
So price action tomorrow is extremely important .
Regards
1.So trend channel will look like a megaphone pattern .
2. Wave 4 has to be deep becoz wave 4 will behave like wave 2 .
3. wave 5 may be 1:1 frm wave 1 to 3 extended from the end of wave 3 . (More on this later with a good example)
But most important
1. THE EXTENDED WAVE 5 SHOULD BE RETRACED BY AT LEAST .618% very fast and furious .
2. WAVE 5 SHOULD NOT BE COMPLETELY RETRACED IF THE IMPULSE HAS TO CONTINUE FURTHER .
So that way you will know stoploss . We will discuss trading edges later as I use 20/50 EMA and most top Ichimoku Kinko Hyo . I have sent a time cycle on this chart based on Ichimoku .
So price action tomorrow is extremely important .
Regards
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