Ending Diagonal appears during 5th wave. This occurs much oftener than leading diagonal, and as you can see consists of 5 3-wave corrective patterns. Here is you also could see another example of Fractal – 5th larger wave that marked as (5) consists of 5 smaller waves, although they have 3-wave structure. Ok, the last note for today here is according to EW theory one of the three impulse waves usually extended, compared to the others. “Extended” means longer. Usually this is wave 5 or 3. Mr. Elliot told us that usually the 5th wave is extended, but this was in 20-30s of the 20th century. Markets have changed significantly since that time. And now many participants have come to conclusion that the 3rd wave is extended mostly. Sometimes happens that 1st wave will be extended. And the final possibility is the situation when extension of waves could not be identified. Definitely speaking, it is unclear what particular wave is extended. In this case common 5 waves pattern shifts to 9 waves. It is easier to understand with followed pictures: Pipruit: Looks like EW theory has as much exceptions as general rules. Because it’s only a start point, but I already can’t capture it in my head. Commander in Pips: Well, in general, you’re right. EW approach to the market analysis has a lot of nuances. But since you will follow it – much of them will put in mind fast. Don’t worry. P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.