FX:XAUUSD Gold Spot / U.S. Dollar
Since the pattern is the basic framework of all , it is an essential consideration in defining any Potential Reversal Zone (PRZ). Although the equivalent pattern has been utilized by technicians for quite some time, the idea of an alternate calculation to define other was originally outlined in The Trader. Alternate patterns provide an effective means of complimenting other significant Fibonacci calculations, especially when the equivalent is not relevant for a particular set-up. The alternate pattern differentiates patterns, as well. For example, the in a is usually equivalent, while the Bat utilizes an alternate 1.27AB=CD pattern. These two similar patterns require completely different conditions to validate their respective structures. This degree of differentiation increases the validity of pattern identification techniques and reduces the overall risk by defining the most precise Potential Reversal Zones (PRZ).