Projected Reversal Point

A projected reversal point is a technically derived price level at which an analyst expects the current trend to reverse direction — identified through technical analysis methodologies including Fibonacci retracement and extension levels, Elliott Wave Theory target projections, pivot point calculations, harmonic pattern completion zones, and Gann angle analysis. Projected reversal points are forward-looking price targets rather than identified historical support/resistance — they are anticipatory levels that the analyst calculates based on mathematical ratios and wave count projections before the price actually reaches them. In Elliott Wave Theory, projected reversal points are identified at the completion of Wave 5 (end of impulse move) or Wave C (end of correction) — calculated by applying Fibonacci ratios (1.618, 2.618, 0.618) to prior wave lengths. In harmonic trading, completion zones of patterns like Gartley, Bat, Butterfly, and Crab patterns define projected reversal points where price is expected to reverse with a high-probability signal. For Indian F&O traders planning options strategies — particularly ahead of Nifty 50 or Bank Nifty weekly expiries — identifying projected reversal points helps determine strike price selection for spreads and the placement of hedging put or call options. Projected reversal points should always be confirmed by price action signals at the anticipated level (reversal candlestick patterns, volume spikes, momentum divergences) before entering trades — they are hypotheses to be tested, not guaranteed outcomes.