For the Bat and the , I look for possible targets at important structure levels, this gives me more confidence to move stops to BE one price reaches first structure/target.
Also, is good to know that between Bat's point D and Cypher's point D, there is a , so I hope it adds to our favor and enhance the odds for this patterns.
Good luck to everyone!
My targets usually are the 38.2 and 61.8 retracement levels, but if there is a very defined structure level , I use that instead.
I hope it helped, thanks and best of luck for you Matt!
1) Structure - if there is a major structure zone at the completion point, that would enhance a lot the probabilities.
2) Ratios - is not the same having for example a Bat pattern that makes the B leg at 40% retracement from XA, than having a Bat pattern completing B leg exactly at 50% or 38.2% retracement. I would trust a lot more in a pattern that respects the ratios with precision because that means that price is respecting or reacting to the fibonacci levels, giving you more probabilities that it will complete D point at the 88.6% retracement (in the Bat pattern) and having a reversal right there.
3) RSI - If you get an Overbought or Oversold condition on the RSI when price reaches D point for completion, the probabilities of price reversing increase.
4) Divergence - you could use the RSI to look for divergence just before price reaches D point.
It's up to you if you wish to combine all of this as a big filter for placing an order on a pattern, but of course it would give you less trades.
Personally, I trade them mostly with a limit order when I think the pattern will complete, but sometimes I use this filters to avoid a trade that maybe doesn't end up too good. What you can also do is use this filters to determine if you can increase the lot size in the trade and trade the minimum lot size when you don't use them.