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**SUMMARY**

The personality trait of Cryptos is more similar to commodities than equities in that the extended 5th is so common. For commodities, this occurs because of leverage; but for Cryptos, I believe it occurs because of immaturity in liquidity or immature Metcalfe's law. However you want to put, if leverage is to be added through expansion of CME futures to Altcoins, the prevalence of extended 5ths will become much higher. 

The below chart shows that Reddcoin (RDD) has a very extended 5th which becomes a warning for a deep retracement. Quite often, the correction goes as deep as the prior wave 2.

![](https://steemitimages.com/DQmbkakqKBKUezBm285ahkE4JxFTXF6VJhJPfXZjvXvJwPC/image.png)

The bottom horizontal line shows the price level of the prior wave 2 and given how extended the 5th wave was, this could be the correction bottom target or at least a point between wave 4 and 2. The time extension also needs to be taken into account because extended 5th also means a longer than expected time to correct. To this end, the blue and the white arrows carve out what could be a multimonth price rounding formation. In effect, this correction has a potential of lower low and longer time extension.
![](https://steemitimages.com/DQmdEUGUK2tUc65efWSCEY3fV7DgwhNi2u1kXSurWRFoQjw/image.png)


**Legal Disclaimer**: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs. Plain English: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes. </center>


Please consider reviewing these Tutorials on:
[Elliott Wave Counting Tutorial #1](https://steemit.com/bitcoin/@haejin/elliott-wave-tutorial-1-by-haejin)
[Elliott Wave Counting Tutorial #2](https://steemit.com/bitcoin/@haejin/elliott-wave-tutorial-video-2-zig-zag-and-flat-corrections-how-to-recognize-and-label-corrective-waves)
[Elliott Wave Counting Tutorial #3](https://steemit.com/bitcoin/@haejin/elliott-wave-tutorial-iii-how-to-label-and-apply-triangle-price-corrections)
[Laddering](https://steemit.com/bitcoin/@haejin/an-effective-buying-and-selling-strategy-laddering-a-tutorial-on-to-cast-a-ladder) and [Buy/Sell Setups](https://steemit.com/bitcoin/@haejin/when-to-buy-and-sell-using-elliott-waves-a-tutorial). 
[Laddering Example with EOS](https://steemit.com/bitcoin/@haejin/eos-target-usd3-22-analysis-update-live-real-time-laddering-example-you-don-t-want-to-miss-this)
[Tutorial on the use of Fibonacci & Elliott Waves](https://steemit.com/bitcoin/@haejin/tutorial-on-the-use-of-fibonacci-ratio-and-elliott-waves)
[@haejin's Trading Nuggets](https://steemit.com/bitcoin/@haejin/haejin-s-trading-nuggets-all-learned-through-tonnages-of-failure-experiences)
[Essay: Is Technical Analysis a Quantum Event?](https://steemit.com/bitcoin/@haejin/essay-is-technical-analysis-a-quantum-event)

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