This "Long" position would be from a completed 'D' point at the $566 level. See below for trade plan suggestions.
Bats are a retracement pattern and are a deep retest of support (bullish) or resistance (bearish). If this one completes to the D point it typically has a 90% likely hood of reversing upwards bullish. A .886 XA retracement to the D point is necessary. An extended AB=CD where the CD leg is 1.27 of the AB leg. Although, an AB=CD where AB and CD are the same length is acceptable, but is a minimum for the pattern to be valid. Minimum 1.618 BC extension to the PRZ. Its preferable if the BC extension is 2.0. Could also be as much as 2.618. The B point retracement must be less than .618 to be a valid pattern. e.g. B could be 0.5 or .382 retracement of the XA.
Finding this one is important because it does have implications for our higher time frame Gartley pattern. I'll post a shot of the inception advanced patterns below.
Common trade plan: Place pending buy at Point D
Stop loss 20 pips below Point X
Target 1 is at the 38.2% Fibonacci retracement level of AD
Target 2 is at the 61.8% Fibonacci retracement level of AD or trailing stops to structure.
Bats are a retracement pattern and are a deep retest of support (bullish) or resistance (bearish). If this one completes to the D point it typically has a 90% likely hood of reversing upwards bullish. A .886 XA retracement to the D point is necessary. An extended AB=CD where the CD leg is 1.27 of the AB leg. Although, an AB=CD where AB and CD are the same length is acceptable, but is a minimum for the pattern to be valid. Minimum 1.618 BC extension to the PRZ. Its preferable if the BC extension is 2.0. Could also be as much as 2.618. The B point retracement must be less than .618 to be a valid pattern. e.g. B could be 0.5 or .382 retracement of the XA.
Finding this one is important because it does have implications for our higher time frame Gartley pattern. I'll post a shot of the inception advanced patterns below.
Common trade plan: Place pending buy at Point D
Stop loss 20 pips below Point X
Target 1 is at the 38.2% Fibonacci retracement level of AD
Target 2 is at the 61.8% Fibonacci retracement level of AD or trailing stops to structure.
