The two-step trade setup is a zigzag pattern that corrects a prior trend
move. If we identify this pattern correctly, it should eventually resolve
itself in the direction of the trend prior to the evolution of the zigzag.
Within this pattern we will be looking for specific Fibonacci price relationships
to overlap or cluster to make sure it falls within the definition of a
proper two-step. These price relationships will be defined in this chapter.
(A two-step pattern can be a bullish setup, as in Figure 8-1, or a bearish
setup, as in Figure 8-2.) So trade setup 3 is essentially a price cluster, with the
addition of the zigzag pattern that strengthens the setup.