Bat Pattern

The Bat pattern was discovered by Scott Carney of Harmonic Trading in 2001. The Bat pattern is in the same family of Gartley's 5-point corrective patterns, but has distinct harmonic ratios. Bat pattern incorporates a precise harmonic ratio (0.886 of XA swing). It also demands that the B (center) retracement should be less than 0.618 of XA swing. The B retracement differentiates between the Gartley and Bat patterns. The Gartley pattern must have a 61.8% retracement of XA swing, and in Bat patterns have the same XA swing retracement below 61.8% at "B".

The Bat pattern's Potential Reversal Zone (PRZ) is defined by 1.27AB=CD pattern, 1.62BC, 0.886 XA retracement levels. In bullish or bearish Bat patterns, a reversal from PRZ is anticipated for a potential long and short entry trades.

Trade: Once the Bat pattern is completed, wait for a higher-high bar or wide range bar to give a signal to enter a long trade. Enter a "long" trade one tick above the high of the confirmation (higher-high or wide range) bar. For bearish patterns, enter a "short" trade one tick below the low of the lower-low or wide-range bar.

Target: The target for the Bat patterns is similar to the Gartley patterns. First targets may be set at A level or 1.27 of XA swing. The secondary targets could be 1.62 to 2.0 of XA swing level.

Stop: The Bat pattern fails if price trades below the X level. Place a stop order one tick below X level.

Fantastic Futures

Fantastic Futures

Get All The Support And Guidance You Need To Be A Success At Futures Trading!This Book Is One Of The Most Valuable Resources In The World When It Comes To Futures Trading For The Common Guy.

Get My Free Ebook

Post a comment