GBPJPY: Bearish Bat

FX:GBPJPY   British Pound / Japanese Yen
124 12 2
A potential Bat pattern completion with an ABCD and minor structure confluence at PRZ.
Hey akyong, I just wanted to know that should we have entered this trade, where we see the red candle with the wick closer to the D point? OR are we still waiting for the market to get to the D point?

akyong moneymaking
Personally, I would wait for price to reach and test for point D. But because prz is a potential reversal zone, it is not a single price level, so depending on your risk apetite, you can decide if you want to be more conservative or aggressive in your entry.

Hope this helps.
I am more of a conservative trader, so I'll wait for the market to come to the D point. Thanks for your reply!!
One more thing, will you be shorting right at the D point completion or will you be waiting for the market to give you a little bit more conformation before entering into the trade? Thanks!!
akyong moneymaking
it depends. If there is a confluence of support and resistance, and the same direction of the overall trend, i will be setting a pending order.

otherwise, i will prefer to wait for price action for confirmation.
Great, Thanks for the clarification!!
Hey akyong, for this pattern, the C point completion should be at the 61.8% retracement of AB leg. But the price came close to that level, but did not touch it. I just wanted to ask that, according to you, do you think this pattern is still valid?

akyong moneymaking
Actually, this depends on how strict you set your patterns criteria to be. But generally, the retracement of point C can be anywhere between 38.2% to 88.6% retracement of AB.

To me, I focus more on the starting point (X) and the completion zone (PRZ). The B and C points just helps to identify which pattern is potentially forming.

Hope this helps: http://www.fxpipsology.com/advanced-patterns/

You can download my trading manual here too: https://www.dropbox.com/s/c88m5rb5dcx3ot4/FX%20Pipsology%20Trading%20Manual%20-%20Trade%20Plan%20%26%20Strategies.pdf?dl=0
Awesome, Thank You so much. I was trying to find good set of rules for the harmonic patterns and this is exactly what I needed. I can't thank you enough.

You are really kind!!
akyong moneymaking
No problem :) Welcome.
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