# Wave Extension

Wave Extension is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Detects completed five-wave impulses from 10-bar swings and labels the extended wave once its length reaches 1.618x the next largest motive wave and it subdivides into its own five sub-waves. While a third wave extends, wave 5 targets print at equality with wave 1 and 0.618 of waves 0-3; near-equal waves 1 and 3 raise an extended-fifth watch, with eight alerts in total.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Jul 5, 2026.
- Access: free.
- Concepts: [Wave Extension](https://www.luxalgo.com/library/concept/wave-extension/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=ia491fcfo43k3787guyujn6k
- Page: https://www.luxalgo.com/library/indicator/wave-extension/

**Wave Extension** identifies which motive wave of an impulse did the traveling and turns the guidelines around that fact into drawings, the first faithful detector built on the [wave extension](https://www.luxalgo.com/library/concept/wave-extension/). Confirmed swings are validated as five-wave impulses under the hard rules; an extension is labeled when the largest motive wave reaches the ratio threshold over the next largest and divides internally into five clean sub-waves.

## How to Trade the Wave Extension?

- **Extended third underway**: once wave 3 dwarfs wave 1 at the wave 4 pivot, dotted targets set wave 5 at wave-1 equality and at 0.618 of the 0-3 distance. Expect a normal fifth.
- **Extended 5th watch**: waves 1 and 3 near equality means neither extended; since most impulses contain one extension, the label warns against fading strength at the first hesitation.
- **Post-extension zone**: after a fifth-wave extension, a shaded box marks the second sub-wave's territory, the area the ensuing correction traditionally revisits, alerted when price returns.

The dashboard tallies impulses by extended wave. A dominant None count invites re-examining the structures.

## Wave Extension Settings

- **Swing Length** (default 10): bars each side confirming the swings that define the five waves, effectively the degree read.
- **Sub-wave Length** (default 4): finer zigzag inspecting the extended wave's internal subdivision; kept below Swing Length.
- **Extension Ratio** (default 1.618): minimum multiple over the next largest motive wave; lower to flag milder elongation.
- **Require Internal Five-Wave Subdivision** (default on): demand at least four interior sub-pivots before labeling.
- **Waves 1-3 Equality Tolerance (%)** (default 10): the closeness raising the extended-fifth watch.
- Tools (all on): **Wave 5 Targets While Wave 3 Extends**, **Extended Fifth Watch**, **Post-Extension Retracement Zone**, **Extended Wave Sub-Structure** and **Extension Statistics**.

## Frequently Asked Questions

### How does an extension relate to a truncation?

Opposites in spirit: an extension overshoots its siblings, while a [Truncation](https://www.luxalgo.com/library/indicator/truncation/) is a fifth stopping short of wave 3's endpoint. Both change what to expect of the fifth, hence the ordinary-sized projections once a third extends.

### Do confirmed detections repaint?

No. A sequence is read only once the swing after its final pivot confirms, locking wave 5. Developing wave-4-pivot readings rebuild as the live structure updates. That is their job.

### Why do the sub-wave labels sometimes not appear?

The dotted sub-structure draws whenever interior sub-pivots exist, but i-iv labels print only for exactly four clean interior turns. Messier interiors stay unlabeled rather than forced into a count.

## Related indicators

- [Elliott Wave](https://www.luxalgo.com/library/indicator/elliott-wave/) (Impulse): markdown at https://www.luxalgo.com/library/indicator/elliott-wave.md
- [Truncation](https://www.luxalgo.com/library/indicator/truncation/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/truncation.md
- [Elliott Hard Rules](https://www.luxalgo.com/library/indicator/elliott-hard-rules/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/elliott-hard-rules.md
- [Triangle](https://www.luxalgo.com/library/indicator/triangle/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/triangle.md
- [Wave Degree Hierarchy](https://www.luxalgo.com/library/indicator/wave-degree-hierarchy/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/wave-degree-hierarchy.md
- [Diagonals](https://www.luxalgo.com/library/indicator/diagonals/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/diagonals.md
- [Motive Wave](https://www.luxalgo.com/library/indicator/motive-wave/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/motive-wave.md
- [NeoWave Logic](https://www.luxalgo.com/library/indicator/neowave-logic/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/neowave-logic.md

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Source: https://www.luxalgo.com/library/indicator/wave-extension/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/