Potential Reversal Zone

Potential Reversal Zone projects a harmonic pattern's completion window before price arrives: from the last four alternating swings (X, A, B, C) it measures D from the XA ratio, the BC projection, and the embedded AB=CD, drawing the band where the three converge. The definitive clean build of the Potential Reversal Zone auto-fits the Gartley, Bat, Butterfly, and Crab templates from the measured B retracement, scores each zone by measurement clustering, and manages the lifecycle through invalidation.

How to Trade the Potential Reversal Zone?

• Zone projected: a scored box appears beyond the C pivot with template name, score, and width; fresh reads supersede same-direction pending zones.
• Price enters the zone: the 0.382 / 0.618 AD retracements draw as initial targets.
• Rejection confirmed: a close back through the near edge after a test, the reversal evidence the tool frames.
• Invalidation: a decisive close through the far edge (or the X point, if selected) fails the pattern; stops conventionally sit beyond it.

All eight lifecycle events alert.

Potential Reversal Zone Settings

• Swing Length (default 10): confirmation bars each side of a swing; larger values read bigger structures.
• Ratio Template (default Auto (Best Fit)): a named set, or whichever best fits the measured B.
• Ratio Tolerance (default 0.05): margin around the ideal ratios and the confluence score's price tolerance.
• BC Projection (r_BC) (default Auto (Reciprocal of C)): snapped to the standard harmonic set unless fixed.
• AB=CD Ratio (r_CD) (default Auto (Template)): 1.0 or the 1.272 / 1.618 alternates.
• Minimum Confluence Score (default 1): zones scoring below are skipped.
• Invalidation Reference (default Zone Far Edge), Measurement Levels, AD Retracement Targets, XABC Structure (all default enabled), Show Last Zones (default 3), and Event Markers (default disabled): drawing controls.

Frequently Asked Questions

How does the PRZ relate to the AB=CD pattern?

What does the confluence score mean?

Is a projected zone an entry signal?