Wave Targets (v)

Wave (v) targets

Before considering the possible targets that can be considered for a Wave (v), we have to overcome the problem of knowing which projection ratio to use for the extension of the prior wave development.

As already explained in Chapter 4, a Wave (v) most commonly extends by a ratio of the distance traveled from the start of Wave (i) to the end of Wave (iii) and from the completion of Wave (iv). In Figure 5.12 this would imply:

Wave (iv) + (X - Y) * ratio

In my experience I have found 66.7% probably to be the most frequent extension. However, there is no way of truly knowing in advance whether it will stall at the shorter 61.8% or even the extended wave ratio 85.4%. Indeed, it is not impossible for an extended Wave (v) to meet a wave equality target.

Perhaps the simple answer is that since internally a Wave (v) is constructed of an (a)(b)(c) move, we should look for a normal extension ratio of Wave (a). The problem here is that Wave (c) can extend by possibly just 85.4% of Wave (a) or as much as 261.8%. I have also found to my frustration at times that, for example, a wave equality target in Wave (c) matches with a 61.8% projection in Wave (v) while a 138.2% projection in Wave (c) matches with a 66.7% projection in Wave (v), and possibly even a 161.8% projection in Wave (c) matches with a 76.4% projection in Wave (v).

Therefore we have to look at other possible methods of identifying the eventual wave (v) completion. What we do know is that a Wave (v) will also always occur either at the conclusion of a Wave (A) or a Wave (C) of a larger degree. Of the two, identifying the completion of a Wave (A) is probably one of the most difficult when considering forecasting. A Wave (v) of Wave (C) should have the same targets as the projection of Wave (A).

Since the first instance of a Wave (v) after a reversal comes in the first Wave (a), the guidelines I provided earlier in this chapter concerning targets for Wave (i) (and inherently the Wave (a) of Wave (i)) are relevant. The sort of areas that were discussed were the Wave (b) of Wave (v), then the Wave (iv) extreme if it represented a key swing level in the prior trend. It is also not too unusual for a prior low in a downtrend (or high in an uptrend) to provide a pivotal barrier on the reversal.

Other areas to observe are periods of congestion which generally provoke a reaction when retested, and in a non-aggressive Wave (iii) the Wave v of Wave (a) can often stall around the extreme of the Wave (i). Another fairly common occurrence I have noted on many occasions is that in an extended Wave (iii) in which the Wave (a) of Wave (iii) stalls some distance past the extreme of Wave (i), the stalling point can be a projection of Wave (i). For example, it may be a wave equality target of Wave (i) or even a 138.2% projection of Wave (i). If the structure of the Wave (a) is rather messy it can cause confusion as to whether the end of Wave (a) is actually Wave (a) or the end of Wave (iii). It is therefore important to be attentive to the structure of the move from the Wave (ii). Even then, if there is a wave equality target in Wave V of Wave (a) that ends at a 138.2% projection of Wave (i), it can be mistaken as being a short Wave (iii).

Instead of repeating several examples I would suggest that the reader should scan over previous examples and note the various types of targets in Wave (v).