Module 3 — Price behaviour
Extension: when a move is already stretched
6 minute read
In plain English
Extension measures how far price has travelled from its session average. A very extended stock has already made its move.
Why it matters
Most painful beginner losses come from buying something after it has already run.
Example
A stock 25% above VWAP is one where the average buyer today is deeply in profit and may take it.
Try this
When the Radar marks a pulse as Extended, write down what a sensible invalidation price would be before doing anything.
Common mistake
Confusing a big move with a big opportunity.
What this does not mean
Extended does not mean it will reverse. It means the risk profile has changed.
Educational content only. Not financial advice.