the pattern is a reversal pattern designed to highlight times when the market is exhausted in its current move.
… the pattern has a version and a version.
… the pattern is composed of three waves or drives that complete at a 127% or 161.8%
.....the trade is entered in the opposite direction to the overall move, when the third drive is completed at a 127% or 161.8% .
… the stop loss goes below the 161.8% for a buy and above the 161.8% for a sell.
… draw a new from the start of the pattern to the completion point of the pattern and take profit at the point where price will have retraced 61.8% of that distance.