PHL
Short

BAC bearish bat pattern on daily chart

NYSE:BAC   BANK OF AMERICA CORP
sell @ 17.28
Trade closed manually: i sold some of my holdings at D but I didn't short this, just used it as a take profit level. Now we have run up much higher as the pattern did not materialize. Time to look for new opportunities.
HI PHL How dou you decide BAT /Butterfly or other similar ?
TKY for Attenion
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PHL fz19
Hi fz19! Thank you for asking. As I do not trade butterfly patterns I can only tell you how I approach bat patterns which I explained above in my reply to a fellow trader.
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Is this bearish because it already broke out of the right wing? I'm not familiar with this pattern. Newb.
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PHL ChadJohnson2017
hi! thanks for your question. No, this has actually nothing to do with the recent break-out. This bat pattern is based on certain Fibonacci retracements that follow each other. Point B should pass the 50% retracement of the X-A move, C should at least come into 38.2% retracement of A-B and the last one (D) is the 88.6% retracement of the X-A move and whenever price reaches it, there is a high probability it will reverse course. You can apply this to any market being currencies or stocks. Look for profits at the B point or 38.2% retracement of A to D ! :) I don't really feel comfortable much shorting stocks, so I use this pattern to exit long-positions instead. Hope this helps!
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