Alexander_Nikitin

Thoughts about bat pattern. Some tips and secrets. Part VIII.

FX:AUDUSD   Australian Dollar/U.S. Dollar
Welcome back, traders. It’s Wednesday and we have another edition of “Thoughts about Bat pattern”. Today we’ll discuss some specific way of trading BATS. I call it BBS.
What does this abbreviation mean? It stands for Back to Back Setup. I was first discovered by me when I was backtesting Gartleys. I have noticed one interesting thing. Sometimes gartleys appear very close to each other. One gartley’s AD may serve as another gartley’s XA. After that second gartley 8 times of 10 I osbserved a huge movement going much further than my secondary targets. I called it DGS – double gartley setup. But then I found the same formation while testing cyphers and bats. I also found that different patterns may be combined. The first is gartley and the second is bat or cypher and vice versa. So I changed the name of the setup and called it BBS.
Studying this phenomenon I came to a conclusion that these formations take place in consolidation periods. The consolidation being bordered by trendlines shows channels, flags, triangles and wedges. So these huge movements were classic channels, flags, triangles or wedges breakouts.
On the chart above presented one of these setups. I minimized it so you can see the flag itself. May be you’ll have some problems differentiating bats. In this case just maximize the chart pressing ‘+’ button.
As you can see price went lower than the second Bat’s X to retest the lower border of a flag and then went skyrocket. Make sure that your stops are not just below X but also below the border of a flag, triangle or wedge formation. In these formations borders serve like magnets. So, if your stop is not beyond the border there’s a high probability that it’ll be triggered. On this particular chart 1,113XA, my regular Bat stop placement, was touched. Luckily, I already knew about this setup and placed stops beyond the lower border. To maximize my profits I adjust my targets from C-point retest to A-point retest keeping in mind that A-point is an opposite side of a channel. Although a flag breakout in the direction of the overall trend has a high probability of success, I prefer to take profits at the border. Classic flag strategies presuppose taking profit measuring the flag’s staff. It’s done the same way as AB=CD pattern traders look for D point. So you can maximize you profits even further. Trying to catch such big moves you are to protect what you have already earned. So, trailing stops to structure won’t be a bad idea. Test it to find the best way of maximizing profits.
Well, I think it’s all for today. Press like and subscribe if you want me to keep on posting this stuff.
If you are new to these series you are welcome to check previous editions:
Thoughts about BAT pattern. Some tips and secrets.

Thoughts about bat pattern. Tips and secrets. Part II.

Thoughts about bat pattern. Some tips and secrets. Part III.


Thoughts about Bat pattern. Some tips and secrets. Part IV.


Thoughts about bat pattern. Some tips and secrets. Part V.

Thoughts about bat pattern. Part V. Continuation.

Thoughts about bat pattern. Some tips and secrets. Part VI.

Thoughts about bat pattern. Some tips and secrets. Part VII.

Hope to see you next Wednesday.
P.S. Pattern traders, look close to this BBS:
snapshot

This pattern was found with Pattern Search Software (c)
Watch the sample video here: https://youtu.be/YPhUCmeL9nA
Contact me in PM if you wish to get your copy
Best regards, Alexander Nikitin.
Fulltime professional trader and programmer.
Good stuff as usual, Alex. I think you might be coining some new terminology! Don't be surprised if you start seeing people posting "BBS trades" or "DGS" setup! LOL!
+1 Reply
Hey Alex. This one's for you, bro!
Reply
EverythingForex PRO EverythingForex
a year ago
USDJPY: Making a BIG BAT!
Reply
Alexander_Nikitin TOP EverythingForex
a year ago
I think this zone may become a prz because of Iverterd Head and Shoulders take profits)). LOL
Reply
Pattern trader who checked the BBS link I shared were very lucky to have a flag breakout))
Reply
more BBS examples:
Reply
Alexander_Nikitin TOP Alexander_Nikitin
a year ago
https://yadi.sk/i/k_2Yodd-i5gxW
Reply
Alexander_Nikitin TOP Alexander_Nikitin
a year ago
https://yadi.sk/i/bmSqVSV8i5hGf
Reply
Alexander_Nikitin TOP Alexander_Nikitin
a year ago
https://yadi.sk/i/4j-Nqo9fi5hHk
Reply
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