| Brach Zone, or "BZ", is the Fibonacci retracement area of 61.8% ~ 78.6%, which is a common level of retracement in trending markets. As such, it is useful as an exit target for a trade, or for a place to look for price reversals. It is named after a well-known trader in Echat, who also pointed out that the BZ tends to coincide with the Price Histogram (Market Profile) Point of Control. |
This chart shows a series of BZ retracements in an up-wave pattern: