Zone Lines
When displaying Confirmed patterns, horizontal reference lines will be drawn at price levels that are relevant to that particular pattern, and we refer to these as zone lines. These zone lines define the Potential Reversal Zone (PRZ).
Zone lines are drawn as dashed lines, and the ratio and price level are displayed at the end of each line. If you do not wish to display the zone lines then uncheck the Show Zone Lines? option in the Settings dialog. You can also check the Hide Old Zone Lines? option and the system will only display zone lines for the most current pattern. The length at which the zone lines are drawn can be adjusted via the Zone Line Length option.
Zone lines displayed for a Bearish Crab. Note that you can adjust the zone line display in the Settings dialog.
For most patterns we display the following zone lines:
Zone Line |
Description |
|---|---|
HOP |
the Harmonic Optimized Price (HOP) [See Video on HOP] |
T1 |
first price target calculated based on the exact ratios of the pattern. |
T2 |
second price target calculated based on the exact ratios of the pattern. |
XA |
for M/W patterns, the XA ratio that defines the pattern. |
AB=CD |
the minimum AB=CD extension that precedes the XA. |
BC |
the minimum BC extension that precedes the XA. |
Note that some zone lines tend to occur in the same vicinity and in those cases we will only display zone lines that do not overlap each other.
See Also:
