We have a very nice potential bullish bat pattern on FX:GBPJPY. Our stops should go below the red zone and targets will be fibs 38.2 and 61.8. Fibs 38.2 is very nice level due to structure (look left). Besides keep an eye on todays news. Avto_T Green Luck -------------------------- Pre Launch Survey Facebook Page Facebook Group Twitter
Yes, I was waiting for the entry, but the news did the job :)
KVE
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I'm glad I missed this idea cuz I would've set an order for an entry at completion which would've failed miserably... :-)
I get the impression that these bat patterns tend to complete earlier than expected on smaller timeframes, below 4H somewhat but especially below 1H...
Makes sense too, I think we all tend to play safe and take entries and profits a bit sooner than the pattern rules we trade prescribe.
Better safe than sorry, making sure we get in, or out, in time!
This one actually took off at about the .786 retracement of XA...
I think it's worth investigating this phenomenon, traders and markets evolve so using the same rules on these patterns after all these years since their discovery might not be the ideal strategy anymore...
But as long as enough traders continue to trade based on these rules then I guess they become self fulfilling prophecies...
RCP
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I agree with you 100%, and here is the issue. According to my monitor process to this pattern, I see that many bat patterns which retrace of AB is 50.0 of XA, then retrace of CD is 78.6 of XA very often. And I think it is worth testing this formation and analyze the rules.