Bat Pattern : Harmonic Pattern
(reading time = 6 minutes)
📊 Harmonic Bat pattern: It could be said that within the harmonic patterns it is one of the favorites among investors due to its effectiveness or reliability of its buy and sell signals.📊
🔮 How to identify the Bat Pattern 🔮
+ The Bat pattern consists of several points (X, A, B, C and D) and price movements (AB, XA, BC, CD) and, of course, it has a BULLISH version and a BEARISH version.
+ It is similar to the Gartley pattern but with different Fibonacci levels, for example, the Fibonacci retracement of 88.6% of the X-A movement.
🚫 Characteristics are as follows: 🚫
(you can refer the examples for clear understanding)
+ The A-B movement would be a Fibonacci retracement of 38.2%to 50% of the X-A movement, the B-C component would be a Fibonacci retracement or 38.2% or 88.6% of the A-B component.
+ The C-D component could be a Fibonacci extension of 161.8% to 261.8% of the B-C movement.
+Point D (turning point) would be a Fibonacci retracement of 88.6% of the X-A segment.
⚠️ Details of the Bat Pattern ⚠️
(you can refer the examples for clear understanding)
+ It consists of five points: X, A, B, C, and D.
The five points give rise to four components or segments: X-A, A-B, B-C and C-D.
+ The A-B component can make a retracement of 38.2% – 50.0% of the X-A component.
+ The B-C component can make a retracement of 38.2% -88.6% of the A-B component.
+ The C-D component can perform a retracement of up to 88.6% of the X-A component.
+ The C-D component can be an extension of 161.8% -261.8% of the A-B component.
D is the entry point for buying and selling trades.
+ The STOP LOSS could be placed below X point (bullish Bat pattern) or above X point (bearish Bat pattern).
📶 Note 📶
+ The essence of the Bat pattern is that it is a chart formation that would help us to enter and incorporate into a trend when it is resuming after a correction.
+ Also, this pattern can give us a good entry when the market definitively changes its trend.
+ Therefore, it is a relatively common harmonic pattern that occurs when the trend changes its direction and then returns to its previous direction.
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