What is Wave extension?

A wave extension is an elongated motive leg—most often wave 3—stretching well beyond a typical multiple of wave 1 (commonly toward 1.618 or 2.618).

Extended thirds are sometimes called the "money wave" because momentum and distance are largest. Wave 5 can also extend, though that is less common in many markets.

If a PipAlert Signal rides an extension, Progress Actions (trailing stop, partial take-profits) matter more than a single distant target.