The bat pattern market strategy like any other harmonic pattern is a four-leg reversal pattern that follows specific Fibonacci ratios. A proper Bat pattern needs to fulfill the following three Fibonacci rules:
AB= minimum 38.2% and maximum 50% Fibonacci retracement of XA leg; BC= minimum 38.2% and maximum 88.6% Fibonacci retracement of AB leg; CD= 88.6% Fibonacci retracement of XA leg or between 1.618% – 2.618 Fibonacci extension of AB leg;