Just thought to get this one posted for those who trade this pair, advanced patterns and this time frame.
As always Entry level on Screen with a potential reversal zone.
Targets would be conventional 38.2% - 61.8% retrace of our CD Move - targets to be adjusted on D Completion or unless stops are hit first.
Stops always below X Level. And should be moved to break even if Target 1 is hit.
This pattern will be invalid if we break and close beyond the A Leg or if we violate the X Leg.
Make sure you follow your own rules and don't trade this unless its in your portfolio, always use your own rules of engagement.
Enjoy and happy trading.
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Pattern is now invalid, make sure to actively mange trade based on price action.
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Make sure to adjust targets as the D completion is lower than entry. Keep an eye on price action on the structure level. In this return move. Stops rolled to BE at TP1
ah ok.. thats the TE Version :) I learned also a Bat Pattern from a german analyst and she only allows the b leg to be at a maximum of 50%. i think the truth is between all of that...Thx anyway
Oztrade
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@Mario4x, All good, when back testing definitely check both ratio's and how it affects price extension or your final results ;) Enjoy your weekend
realmariolino
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Sure this would be a Bat pattern as the B retracement goes deeper than 50% of the XA Leg?
Oztrade
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@Mario4x, Hi Mate, yeah it depends on how you have studied the BAT or what backtesting results you use to trade it. See below details
Step 1: The XA Move
The first step in identifying a Bat pattern is to find an impulse or anchor leg (XA). Once the initial move is created and identified then we can start to look for the rest of our criteria to be met.
Step 2: The AB Move
After our initial (XA) move we will look for price action retrace and complete a valid (B) leg move. For the (B) leg to be valid price action must retrace to a minimum of 50% of (XA) and not touch the 61.8% (XA) Fibonacci retracement.
Step 3: The BC Move
Once our (AB) leg is complete we can now look for a valid (C) Leg. The market creates a valid (C) leg by completing at least a 38.2 retracement of the (AB) leg. This leg is considered valid as long as price action does not move beyond the (A) leg.
Step 4: The D Completion
The (CD) leg of the Bat pattern is simple. A Bat pattern D completion is always at the 88.6 Fibonacci retracement of the original impulse/anchor leg or (XA).
Some people use a 38.2% But I always use the 50.0% but not more than 61.8 - here is the details for Scott Carney who discovered this pattern.