Harmonic Bat Pattern in Forex,Best Forex Brokers
05/08/ · Bat pattern is considered as the most accurate harmonic pattern in Forex and it was defined by the Scott Carney. Image below shows you two Bat patterns, bearish and bullish bat In forex trading, the bat pattern is a retracement and continuation pattern that occurs when a trend reverses its direction temporarily but then continues on its original track. It gives an BAT-OE is an EA available on both the MT4 and MT5 trading platforms. Key Functions. MT4 and MT5 Expert Advisor. Functions on all asset classes (Forex, gold, bitcoin, stocks and indexes) ... read more
Choose between fixed lot size or percentage of account. Quick And Easy. User-defined parameters are adjustable and retained for trade execution.
Single Or Triple Orders. Asset Class. All Symbols Offered By Broker. Forex, gold, bitcoin, stock, and indexes. Stop Loss. ATR Or Candlestick. Chart Entry Line. Drag And Drop. Just drag and drop the conveniently located horizontal line to your desired entry level. Account Type. Triple order function requires a hedging and not a netting account.
Take Profit. Reward-Risk Based. Set your TP reward as a percentage of your risk. Trade Panel. The bat pattern is an advanced chart pattern that may seem hard to grasp for beginners especially. Even so, it identifies potential reversal zones with high accuracy. Making it a purposeful and powerful weapon in technical analysis that every trader would hold in their arsenal. To identify a bat pattern, it must have 5 points, which we would identify as X, A, B, C and D.
The 5 points are part of an Elliot wave movement from motive to corrective phase, with CD as the start of a reversal. For the bullish bat pattern, XA is the impulse wave 5 of a bullish Elliott wave of a smaller degree. Point B must retrace to Point C must be at BC then forms the corrective wave B.
Lastly, point D must be at CD then forms the corrective wave C. For the bearish bat pattern, XA is the impulse wave 5 of a bearish Elliott wave of a smaller degree. After identifying the bat pattern, we will be looking for a trade set up depending on whether the pattern is bearish or bullish.
For a bullish set up, the entry is determined by price action. The profit taking level can be taken at point C. Also read: Parabolic Sar Tested And Explained. For a bearish set up, the entry is determined by price action.
Similar to the Gartley pattern, the pros of using the bat pattern trading strategy are that it is highly accurate due to the specific measurements using the Fibonacci retracements. This allows traders to identify price reversal areas, stop loss and profit targets with high accuracy. However, due to the lack of frequent occurrence in the market, it requires patience and discipline from the trader, which in turn leads to opportunity costs, where other potential trades might be missed out on.
The pattern might give several red flags during its formation and one of the largest one that would cause it to fail is the unmatching Fibonacci ratios. Lastly, it is definitely a beginner unfriendly strategy as it is tedious and hard to grasp with Fibonacci and Elliot wave knowledge as pre-requisites.
To find out the profitability of the bat pattern trading strategy, we decided to do a back test based on the past 5 trades from 2 Jul 21 on the M1 timeframe. The rules for entry will be the same as what was mentioned above. We will be back testing this throughout 3 types of trading vehicles, namely, EURUSD for forex, US30 DJI for stocks and BTCUSD for cryptocurrency. For the Backtest results, trades with blue and yellow zones indicate an overall win with the blue zone as reward and the yellow zone as the risk taken.
The bat pattern is a harmonic chart pattern, based on Fibonacci numbers and ratios, that helps traders identify reaction highs and lows. Just like other Harmonic price patterns, the bat pattern utilizes Fibonacci numbers to define precise turning points. Unlike other more common trading methods, harmonic trading attempts to predict future movements. The bat pattern is a variation of the harmonic pattern and is hence similar to the Gartley pattern except in terms of Fibonacci measurements.
Since it is a variation of the harmonic series, it requires good understanding and knowledge on Fibonacci and the Elliott wave theory to better understand how the pattern works and operates. As a harmonic pattern, the bat pattern usually takes place in the correction phase and leads to a formation of wave 1 in the motive phase.
However, it is not to be confused with a leading diagonal formation in the Elliott wave theory, although it is possible for the bat pattern to form within the leading diagonal.
The bat pattern is an advanced chart pattern that may seem hard to grasp for beginners especially. Even so, it identifies potential reversal zones with high accuracy. Making it a purposeful and powerful weapon in technical analysis that every trader would hold in their arsenal. To identify a bat pattern, it must have 5 points, which we would identify as X, A, B, C and D. The 5 points are part of an Elliot wave movement from motive to corrective phase, with CD as the start of a reversal.
For the bullish bat pattern, XA is the impulse wave 5 of a bullish Elliott wave of a smaller degree. Point B must retrace to Point C must be at BC then forms the corrective wave B.
Lastly, point D must be at CD then forms the corrective wave C. For the bearish bat pattern, XA is the impulse wave 5 of a bearish Elliott wave of a smaller degree. After identifying the bat pattern, we will be looking for a trade set up depending on whether the pattern is bearish or bullish.
For a bullish set up, the entry is determined by price action. The profit taking level can be taken at point C. Also read: Parabolic Sar Tested And Explained. For a bearish set up, the entry is determined by price action. Similar to the Gartley pattern, the pros of using the bat pattern trading strategy are that it is highly accurate due to the specific measurements using the Fibonacci retracements. This allows traders to identify price reversal areas, stop loss and profit targets with high accuracy.
However, due to the lack of frequent occurrence in the market, it requires patience and discipline from the trader, which in turn leads to opportunity costs, where other potential trades might be missed out on. The pattern might give several red flags during its formation and one of the largest one that would cause it to fail is the unmatching Fibonacci ratios.
Lastly, it is definitely a beginner unfriendly strategy as it is tedious and hard to grasp with Fibonacci and Elliot wave knowledge as pre-requisites. To find out the profitability of the bat pattern trading strategy, we decided to do a back test based on the past 5 trades from 2 Jul 21 on the M1 timeframe. The rules for entry will be the same as what was mentioned above. We will be back testing this throughout 3 types of trading vehicles, namely, EURUSD for forex, US30 DJI for stocks and BTCUSD for cryptocurrency.
For the Backtest results, trades with blue and yellow zones indicate an overall win with the blue zone as reward and the yellow zone as the risk taken.
The average risk reward ratio of this strategy for EURUSD Forex is 3. The profitability of this strategy for EURUSD Forex is 7. In conclusion, the bat pattern trading strategy is definitely a more profitable one as compared to the Gartley pattern due to its high win rate and high risk to reward ratio it generates.
Given its high specificity, like the Gartley pattern, the bat pattern also still has a chance to fake traders out. In such cases, traders may consider using indicators to back their trading plan up or by watching out for certain red flags that can happen such as price action. Even then this comes with trading experience and subjectivity. Hence, this advanced technique is not recommended for new traders who had just began their financial journey in the trading world.
Needless to say, a grasp for this technique along with the other harmonic patterns will definitely increase your knowledge in the trading world and allows you to approach each trade plan with a wider perspective.
He is a recognized expert in the forex industry where he is frequently invited to speak at major forex events and trading panels. His insights into the live market are highly sought after by retail traders. Ezekiel is considered as one of the top forex traders around who actually care about giving back to the community. He makes six figures a trade in his own trading and behind the scenes, Ezekiel trains the traders who work in banks, fund management companies and prop trading firms.
We have generated over millions of dollars via trading with the 5 part system outlined in this free training. Download it now before this page comes down or when I decide to stop mentoring. Bat Pattern Complete Guide Next ». Related articles Everything About The Harmonic Scanner. Harmonic Patterns — A Complete Guide.
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The Bat Pattern,Price chart of EURCAD in real time mode
BAT-OE is an EA available on both the MT4 and MT5 trading platforms. Key Functions. MT4 and MT5 Expert Advisor. Functions on all asset classes (Forex, gold, bitcoin, stocks and indexes) 05/08/ · Bat pattern is considered as the most accurate harmonic pattern in Forex and it was defined by the Scott Carney. Image below shows you two Bat patterns, bearish and bullish bat In forex trading, the bat pattern is a retracement and continuation pattern that occurs when a trend reverses its direction temporarily but then continues on its original track. It gives an ... read more
Did you like my article? For example, I like to trade EURUSD pair because it is not too fast and too slow and gives me good accurate patterns. Risk Methods. What is an Expert Advisor? And Fibonacci ratios are obtained by dividing Fibonacci numbers. Previous Previous post: HaasOnline Review. Point C must be at
Point B must retrace to In fact, the range of Forex, gold, bitcoin, bat forex, stock, and indexes. Bat forex Friendly Interaction. In this example, the breakout of the auxiliary trend line drawn through the correctional lows of the Three Little Indians pattern became a signal to open a short position.
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