30/1/ · Scott Carney created the bat pattern, which is a harmonic trading pattern. In his Harmonic Trading series of books, he discussed the pattern. It’s one of numerous harmonic 5/8/ · Bat pattern is considered as the most accurate harmonic pattern in Forex and it was defined by the Scott Carney. Image below shows you two Bat patterns, bearish and bullish bat Forex Factory is where professional traders connect to the forex markets, and to each other. Home; Forums Menu. Forums Trades News Calendar Market Brokers Login Join pm ... read more
In this scenario, traders may avoid entering the trade. A helpful way to solve this problem is combining the Bat with other technical indicators, for the confirmation of the trend.
The bearish Bat pattern is one of four major harmonic trading patterns. The other three include the Gartley pattern, Butterfly pattern , and Crab pattern. The Bat pattern offers the best reward to risk profile of all these other harmonic structures. This is due to the deep retracement that is required to validate the bat formation. To implement the pattern, traders can look for the Bat on any timeframe according to their own personal trading preferences.
The market strategy of the pattern is suitable for all time frames and all markets types. Traders have to keep in mind that on lower time frames using the bat pattern market strategy has some challenges because the pattern tends to appear on less frequent on lower time frames. The Bat Pattern can be used on your trading platform charts to help filter potential trading signals as part of an overall trading strategy. The pattern incorporates the 0. The B point retracement must be less than a 0.
The pattern possesses many distinct elements that define an excellent Potential Reversal Zone PRZ. The pattern typically represents a deep retest of support or resistance that can frequently be quite sharp. The bat pattern is known as the most accurate of all harmonic chart patterns; however, using it requires the consideration of a range of factors, including the Fibonacci measurements, entry levels, and profit targets. A bat harmonic can be either bullish or bearish.
This depends on where it appears on a price chart — at the bottom of a downtrend or uptrend. But if it has all the conditions and Fib ratios, it is indeed a harmonic bat pattern. Just as it is with many harmonic patterns, there is a bullish and a bearish version of the bat pattern.
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ACCEPT Read More. These days, on most of the trading platforms, we can find all the harmonic tools which are combined with Fib levels. These tools get extremely handy when we need to quickly confirm the pattern. We use TradingView charts, and the harmonic pattern tool can be found in the left-side toolbar. Coming to the strategy, our starting point X was at 0.
The price action started to counter the trend from 0. Now we located our first swing high, so the next step is to count the market wave movement. The AB move retraces at Furthermore, the market prints the last move of the pattern, which is at So now we have got all the four touch patterns for a bullish Bat pattern on the price chart. While back-testing, we found the market blasting to the north whenever the CD move finishes at This is the reason why we took the buy entry as soon as the price-action completes the CD move.
Overall it was an excellent risk-reward ratio trade. Also, when the CD move touches the Both the bearish and bullish Bat patterns have the same rules.
The only difference is that it appears inversely. The very first move has started from point X and ends at point A. This can be considered as a random bearish move. The price action has then reversed back and retraced at The market then goes into the counter direction and forms a BC leg, which is also retraced at The last leg was the CD move, and it finished close to the These swing highs and lows confirm the formation of a bearish Bat pattern on the price chart.
So when the price action prints a bearish confirmation candle, we went short in this pair. Scott Carney described the points B, C and A as the first, second, and third target respectively.
We can book profit at any of these points, or we can hold for deeper targets depending on the market situation. We were sure that the price could easily reach the last target. The price action did hold at point C for a longer time, which indicates that this trade might not work. Any armature trader would have panicked and closed their trades at breakeven. We must be patient and confident enough to stick to the strategy.
Stop-loss placement is crucial, and one thumb rule while trading harmonic patterns is to place the stop-loss just below point X. In short, harmonic patterns imply that the trends can be subdivided into smaller or larger waves using which the future price direction can be predicted.
These harmonic patterns only work if the fibs ratios are aligned with the pattern. Some traders do not believe the authenticity of harmonic patterns, but we assure you that you can trade these patterns confidently. This ends the discussion on the Bat pattern. Remember that this pattern provides accurate entries as well as good RRR trades compared to other harmonic patterns.
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Submit by joy Time Frame: 15 min, min, 60min, min. Pairs: all. Zup 80 ;. Money Flow index. Bat Patterns. The Bat pattern is a harmonic pattern that was discovered by Scott Carney in Check out the following image:. The Bat pattern is in the same family of Gartley's 5-point corrective patterns, but has distinct harmonic ratios. The Bat pattern incorporates a precise harmonic ratio 0. It also demands that the B center retracement should be less than 0.
The B retracement differentiates between the Gartley and Bat patterns. The Gartley pattern must have a The Bat pattern's Potential Reversal Zone PRZ is defined by 1. In bullish or bearish Bat patterns, a reversal from PRZ is anticipated for a potential long and short entry trades.
Trading the Bat Pattern 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. Setting Targets Targets for Bat patterns are similar to the Gartley patterns. First targets may be set at the A level or 1. The secondary targets could be 1. Stop Losses. The Bat pattern fails if price trades below the X level. Place a stop order one tick below X level. You do not need to know how to identify or draw these patterns on your chart in order to use them as the custom indicator we will be using will draw these patterns for us.
It's still good to know about the most important characteristics of these patterns:. The pattern incorporates the 0. The B point retracement must be less than a 0. The Bat utilizes a minimum 1. It is an incredibly accurate pattern and requires a smaller stop loss than most patterns. txt Site map. Submit by joy22 Time Frame: 15 min, min, 60min, min. Pairs: all Indicators: Zup 80 ; Money Flow index.
Bat Patterns The Bat pattern is a harmonic pattern that was discovered by Scott Carney in Check out the following image: The Bat pattern is in the same family of Gartley's 5-point corrective patterns, but has distinct harmonic ratios. ZUP Forex Metatrader Indicator. Stop Losses The Bat pattern fails if price trades below the X level. It's still good to know about the most important characteristics of these patterns: The pattern incorporates the 0.
5/8/ · Bat pattern is considered as the most accurate harmonic pattern in Forex and it was defined by the Scott Carney. Image below shows you two Bat patterns, bearish and bullish bat Forex Factory is where professional traders connect to the forex markets, and to each other. Home; Forums Menu. Forums Trades News Calendar Market Brokers Login Join pm 30/1/ · Scott Carney created the bat pattern, which is a harmonic trading pattern. In his Harmonic Trading series of books, he discussed the pattern. It’s one of numerous harmonic ... read more