BAT Harmonic Pattern [Forex & Crypto Trading Strategy]

BAT Pattern [Forex & Crypto Trading Strategy] — Harmonious patterns are not inferior to the classic graphic patterns of any financial markets and work out very well.

They are one of the most accurate methods for predicting further price movement in the market, since Fibonacci numbers (levels and their extensions) play an important role in determining and building a pattern.

The BAT pattern is considered to be one of the most effective harmonic patterns. Earlier we considered patterns:

• Gartley Butterfly,
• 5-0,
• Rooks,
• 3 Indians,
• Crab.

The harmonious BAT model was introduced into technical analysis by the world-famous trader — Scott Carney.

He described this harmonious pattern not so long ago — only in 2000. Kearney, in turn, is a follower and student of the trader who introduced harmonious patterns into technical analysis — Harold Gartley.

Bat — basic ratios

Like most harmonious patterns, the «Bat» consists of five points — X, A, B, C, D. Also, the «BAT» model itself includes another harmonious pattern — AB=CD.

In its form, the “BAT” resembles the harmonious pattern that we previously examined on this site — the “Pesavento Butterfly”.

But there are fundamental differences between these two patterns, namely, the ratio of points relative to Fibonacci levels (they are completely different).

An ideal BAT pattern is a model that satisfies the following conditions:

• point B is in the range of 0.382-0.5 of the length of the movement XA;
• point C is in the range of 0.382-0.886 of the length of the movement XA;
• point D is a local extremum and is located at the level of 1.618 — 2.618 of the Fibonacci grid built on the segment BC and — 0.886 of the Fibonacci grid built on the segment XA.

Do not forget that an important property of all harmonious patterns is fractality. That is, in almost any harmonious pattern, you can find another harmonious pattern.

The Bat pattern is no exception. With a decrease in the time interval of the chart, several harmonious patterns can be found.

How to trade the BAT pattern — trading strategy:

1) First of all, you need to make sure that the ratios of the constructed points of the «BAT» meet the requirements for building the model, which we described above.

2) And after that, make a deal at point D or wait for a rebound from this point and then open an order.

3) Stop loss is placed behind the next Fibonacci level / Fibonacci extension.

4) Profit — maximum / minimum of the model.

That’s all I wanted to tell you about Bat.

Video with examples: