Banknifty 1H

Point A to B:

The initial impulsive leg forms the foundation of the harmonic pattern.
This downward movement creates a strong momentum phase.
Point B to C:

This is the retracement leg, where the price pulls back after the sharp decline (A to B).
The retracement appears to stop around the 38.2% Fibonacci retracement (marked as 0.363 on the chart), which is common in harmonic setups like the Butterfly pattern.
Point C to D:

This leg represents the extension and final leg of the harmonic pattern.
The price extends significantly downward, reaching the 2.618 Fibonacci extension of the B-C leg.
In harmonic trading, this area is considered a Potential Reversal Zone (PRZ).
Point D (Potential Reversal Zone):

Point D is the critical zone for traders to anticipate a reversal.
The 2.618 extension is a key Fibonacci level, aligning with harmonic principles for patterns like the Butterfly or AB=CD.