QuantitativeExhaustion

Long Bullish Harmonic Bat, Conditional Position at 1.3092

Long
FX:EURUSD   Euro / U.S. Dollar
23
Short
Target
1.3153

Possible
Throwback (POP!)
1.325

Long Position
1.30915

Long
Target
1.3481

Possible Peak
1.356

Harmonic Bat Pattern

The harmonic bat pattern was discovered by Scott Carney in 2001. Carney maintains it is one of the most accurate patterns, and requires a smaller stop loss than most other patterns.

This is one of the retracement patterns (along with the Gartley Pattern ) - and is a deep retest of Support (in the case of a bullish Bat ) or Resistance (for a bearish bat ) around the X level. The D level reversal will be at the .886 XA retracement in the PRZ.

If a Bat fails - it can often "morph" into a Crab Pattern where the D point exceeds the X point.

This pattern usually has an extended CD leg which is 1.27 Fibonacci extension of the AB - providing a favourable risk/reward.

Systematic tests by FxGroundworks, have shown the Bat pattern success rates to be 89%-95%.

Harmonic Bat Pattern Structure
Key features to look out for are:

•A .886 XA retracement to the D point is necessary. The D point cannot exceed the X point - if it does, then the pattern is invalid.
• Other Fibonacci levels should be closely grouped in tne PRZ
•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.


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