In stock and commodity markets trading, chart pattern studies play a large role during technical analysis.
Included in this type are the most common patterns[1] which have been introduced to chartists for more than a hundred years.
These patterns calculate the Fibonacci aspects of these price structures to identify highly probable reversal points in the financial markets.
The key is to identify these patterns and to enter or to exit a position based upon a high degree of probability that the same historic price action will occur.
Below is a list of commonly used harmonic patterns: Traders use the Potential Reversal Zone (PRZ) as an important level of support/resistance in their trading and price action strategy.