Impulse
Extension
When one of the impulse waves (1, 3, or 5) subdivides into an elongated impulse with exaggerated subdivisions. Wave 3 extensions are most common in stock markets, while Wave 5 extensions are common in commodities. The extended wave is typically 161.8% or more of the next longest wave.
EXAMPLE
A Wave 3 extension in EURUSD runs 280 pips while Waves 1 and 5 are each approximately 100 pips.