The is a distinct 5-point extension structure that utilizes a 161.8% projection of the XA leg exclusively. This is the most critical aspect of the pattern and the defining level in the Potential Reversal Zone (PRZ).
The extreme (261.8%, 314%, 361.8%) projection of the BC leg compliments the 161.8% extension of XA.
Due to the extremity of the projections utilized in the completion of the pattern, the frequently experiences sharp price action and dramatic reversals.
It is common for price action to possess extreme ranges, quickly testing the PRZ during the reversal. In fact, the price action experienced in completions is usually the most extreme of all of the patterns.
Despite the typically severe reversals, the focus of the pattern’s completion should examine the 161.8% projection of XA.
ENTRY = 1.18152
STOP = 1.18434
TP1 = 1.17696