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Impulse

Wave 3

Usually the longest and most powerful impulse wave. Wave 3 is never the shortest of waves 1, 3, and 5. It commonly extends to 161.8% of Wave 1 and often features the strongest momentum, highest volume, and widest price bars. This is where professional traders aim to capture the largest moves.

EXAMPLE

In EURUSD, Wave 1 moves 100 pips, Wave 2 retraces 62 pips, then Wave 3 surges 162 pips (161.8% of Wave 1).

RELATED TERMS

Extension
When one of the impulse waves (1, 3, or 5) subdivides into an elongated impulse ...
Fibonacci Extension
Price projections beyond 100% of a measured wave move. Common extension levels a...
Wave 2 RuleAll TermsWave 3 Rule
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