Bat Pattern™

“The Bat pattern is a precise harmonic pattern that I discovered in 2001. The Bat pattern is probably the most accurate pattern in the entire Harmonic Trading arsenal. The pattern possesses many distinct elements that define an excellent Potential Reversal Zone (PRZ). The pattern typically represents a deep retest of support or resistance that can frequently be quite sharp. Quick reversals from Bat pattern PRZs are quite common. In fact, valid reversals from Bat patterns frequently possess price action that is quite extreme. The pattern incorporates the powerful 0.886XA retracement, as the defining element in the Potential Reversal Zone (PRZ). The B point retracement must be less than a 0.618, preferably a 0.50 or 0.382 of the XA leg. The most ideal B point alignment is the 50% retracement of the XA leg. The B point is one of the primary ways to differentiate a Bat from a Gartley pattern. If a pattern is forming and the B point aligns at a 0.50 of the XA leg, it is likely to be a Bat. The Bat utilizes a BC projection that is at least 1.618. The BC projection can be as much as 2.618. However, the most ideal BC projections in a Bat pattern are a 1.618 or a 2.0. It is important to note that the BC projection must not be a 1.27, as anything less than a 1.618 BC projection invalidates the structure. Furthermore, the 1.27 BC projections are usually found in Gartley structures. The AB=CD pattern within the Bat distinguishes the structure, as well. This pattern is usually extended and ideally possesses a 1.27AB=CD calculation. However, the equivalent AB=CD pattern serves as a minimum requirement for any Bat to be a valid set-up. It is an incredibly accurate pattern and requires a smaller stop loss.”

Harmonic Trading: Volume One Page 79
(Copyright Scott M. Carney 2004 HarmonicTrader Press, 2nd ed. 2010 Financial Times Press)

The Bat Pattern™, is a precise harmonic pattern™ discovered by Scott Carney in 2001

The pattern incorporates the 0.886XA retracement, as the defining element in the Potential Reversal Zone (PRZ).

The B point retracement must be less than a 0.618, preferably a 0.50 or 0.382 of the XA leg. The Bat utilizes a minimum 1.618BC projection.

In addition, the AB=CD pattern™ within the Bat pattern™ is extended and usually requires a 1.27 AB=CD calculation. It is an incredibly accurate pattern and requires a smaller stop loss than most patterns.

Bearish

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