What are the magenta extension points?
Extension signals are moments when the market displays extremes of both self-similar behavior and expected log-periodic oscillations. They show that strongly trending behaviour of the market is becoming unsustainable and is expected to stop. Very often after an extension, the current trend is followed by a dramatic reversal. However, this reversal is not part of the model forecast. The prudent approach would be to expect the prices to establish a sideways trading pattern after the signal.
