If you trade bat patterns, usually you take profit at the 0.382 and the . of the AD move.
We have reached that . now and it's time to take profits. And immediately we have another setup, the classic 26.18 (or twenty-six eighteen) trade.
What is required for a 26.18 trade :
1. : the A and C points of our
2. Break below close below of the neckline : D -point of our
3. 0.618 of previous move : where we take profit now
=> all requirements for 26.18 trade are met.
What is expected to happen :
4. price retracement into previous low (Target 1)
5. 1.272 of the previous move down (Target 2)
- a potential completion of an pattern
Stop Loss : should go minimum above the red dotted line but it is safer to put it above the structure of the , which would make Target 1 approximately a 1:1 risk/reward ratio.
Being a novice trader myself I know that we often crave for such kind of information so I try to provide it when the right pattern occurs ... I'm not making promises on future releases but I'll try to keep the same standard of information :)
Once the high of a double top is broken, it is no longer valid as a pattern. Same goes of course for a double bottom.
Hope it makes sense.