The Bat Pattern , is a precise harmonic pattern discovered by Scott Carney in 2001
The pattern incorporates the 0.886XA retracement, as the defining element in the Potential Reversal Zone (PRZ).
The B point retracement must be less than a 0.618, preferably a 0.50 or 0.382 of the XA leg. The Bat utilizes a minimum 1.618BC projection.
In addition, the AB=CD pattern within the Bat pattern is extended and usually requires a 1.27 AB=CD calculation. It is an incredibly accurate pattern and requires a smaller stop loss than most patterns.
The pattern incorporates the 0.886XA retracement, as the defining element in the Potential Reversal Zone (PRZ).
The B point retracement must be less than a 0.618, preferably a 0.50 or 0.382 of the XA leg. The Bat utilizes a minimum 1.618BC projection.
In addition, the AB=CD pattern within the Bat pattern is extended and usually requires a 1.27 AB=CD calculation. It is an incredibly accurate pattern and requires a smaller stop loss than most patterns.
3.1 pip Stop Loss = $99.2 Total risk
Closed 50% of position at 2R = $99.2 profit secured (1R)
$44.6 risk remaining
Closed 50% of position at 4R = $99.2 profit secured (2R)
$22.3 risk remaining
Closed 50% at 8R = $99.2 profit secured (3R)
$11.15 risk remaining
Closed 50% at 16R = $99.2 profit secured (4R)
$5.57 risk remaining