The actual zigzag pattern we are looking to identify occurs between
points b and e. The ratios that we are going to run to look for a cluster will
come from:
Running the retracements of a to b (.382, .50, .618, and .786)
Running the price extensions of c to d (1.272 and 1.618)
Running the price projection of b to c, projected from d (1.00)
The same ratios are applied to both bullish and bearish two-step
patterns (see Figures 8-1 and 8-2).