Glossary · Pro tools

Potential reversal zone

The price band where a harmonic pattern’s separate measurements agree.

Why it matters

A pattern projects D from the XA swing, the BC swing and an AB=CD leg. Where those land close together, the zone is tight and the level is more precise.

How to read it

More numbers agreeing in a narrow band is a better zone. The stop limit always sits beyond the zone, never inside it, because price often pokes through before turning.

Also called: PRZ, reversal zone

Related

In the Cluenex app, this explanation opens next to every potential reversal zone figure, with the live reading for the stock you are looking at. Open it in Cluenex