The 5^{th} wave should
stay below the trendline but quite often break the upper trendline(false break)
only to quickly retrace 61.8%-95% of the entire 5^{th} wave. The
channeling tends to expand like a megaphone.

Wave 1 should progress at the
sharpest angle with wave 3 following closely behind and wave 5 possessing
slowest rate of acceleration.

When the 5^{th} wave is
extended, wave 1 & wave 3 will usually equal or related in time by 61.8%. 3^{rd}
wave must be slightly longer than wave 1 but should not be complete beyond
161.8% of wave 1 externally. Usually wave 3 is internally by 161.8%of wave 1.

External relationship: more common
than internal relationship. Two situations are where external relation can be
applied.

1. 3^{rd}
wave stop at a point that is 161.8% above the end of wave1. Next possibility is
100% above the end of wave 1. If the 3^{rd} wave exceeds the 161.8%
level, it will extend and 5^{th} wave should be shorter than wave 3.

2. 5^{th}
wave stop at a point that is 100%, 161.8% or 261.8% above the top of wave 3. 161.8%
is the most likely termination level and 100% is next likely level. 261.8% level
is only likely when market is terminating a large, long term advance or
decline.

Internal relationship: 5^{th}
wave extension should be 100% of 1+3 or 161.8% of wave 3, whichever is shorter.
It can be as much as 261.8% of 1+3 but it is the maximum limit.

Wave 4 should be more complex and
time consuming than wave 2. Wave 4 generally retraces significant amount (40-61.8%)
of wave 3 and to counteract this retracement it will usually end in with a C
failure or a complex correction with non-limiting triangle at the end.

The correction to after 5^{th}
wave extension must retrace at least 61.8% of 5^{th} wave but must not
retrace all of 5^{th} wave of same degree or one higher degree. 5^{th}
wave extension can completely retrace of same degree for below.

1. The
5^{th} extension pattern was part of a larger impulse which was also a
5^{th} extension.

Or

2. The
5^{th} extension was the c-wave of a flat or zigzag pattern.