Just a quick one 'cause I have a meeting to run to. Watch for this pattern completion/confirmation at 1.618 of the BC leg of the pattern. Targets at .382 & .618 of the AD move.
UPDATE: This was a bastard of a bat pattern. I shouldn't have posted it being in such a hurry. It did satisfy the 1.618 of the BC leg and the ABCD, but another of the requirements is a .886 of XA- it didn't have. That being said, ultimate probability which comes from "perfectly formed" patterns doesn't mean you should ignore the over-arching implications if every requirement isn't perfectly met. Case-in-point, sharp reversal $2 off of our target. That of course means I didn't get my entry, but all part of the learning process. For everyone (myself included) here are the "perfect" Bat pattern requirements:
- A .886 XA retracement to the D point is necessary.
- The D point cannot exceed the X point - if it does, then the pattern is invalid.
Other Fibonacci levels should be closely grouped in the Potential Rerversal Zone
An extended AB=CD where the CD leg is 1.27 of the AB leg. Although, an AB=CD where AB and CD are the same length is acceptable, but is a minimum for the pattern to be valid.
- Minimum 1.618 BC extension to the PRZ. Its preferable if the BC extension is 2.0. Could also be as much as 2.618.
The B point retracement must be less than .618 to be a valid pattern. e.g. B could be 0.5 or .382 retracement of the XA.
UPDATE: This was a bastard of a bat pattern. I shouldn't have posted it being in such a hurry. It did satisfy the 1.618 of the BC leg and the ABCD, but another of the requirements is a .886 of XA- it didn't have. That being said, ultimate probability which comes from "perfectly formed" patterns doesn't mean you should ignore the over-arching implications if every requirement isn't perfectly met. Case-in-point, sharp reversal $2 off of our target. That of course means I didn't get my entry, but all part of the learning process. For everyone (myself included) here are the "perfect" Bat pattern requirements:
- A .886 XA retracement to the D point is necessary.
- The D point cannot exceed the X point - if it does, then the pattern is invalid.
Other Fibonacci levels should be closely grouped in the Potential Rerversal Zone
An extended AB=CD where the CD leg is 1.27 of the AB leg. Although, an AB=CD where AB and CD are the same length is acceptable, but is a minimum for the pattern to be valid.
- Minimum 1.618 BC extension to the PRZ. Its preferable if the BC extension is 2.0. Could also be as much as 2.618.
The B point retracement must be less than .618 to be a valid pattern. e.g. B could be 0.5 or .382 retracement of the XA.