POTENTIAL BAT PATTERN FORMING - AUDUSD 1H ADVANCED PATTERN
Updated
Hi Traders, just thought to get this one up for those who trade this pair and this interval. We see that the XABC has formed within the rules for BAT Pattern.
Looking for a break and close below the B leg and we should potentially see price fall to our 88.6% which would be our entry level.
Things to keep in mind if we break above our C leg this pattern then becomes invalid. If price falls below X its also classed as invalid.
As always entries stops and initial targets on screen.
Our targets should be moved when we have a clear D completion - also keep in mind you can shoot for a retest of structure for your targets, however I use a 2 target strategy with 38.2% and 61.8% Retrace of the CD move.
Also when we hit our TP1 the second target stop should be moved to the break even position, also keep in mind the break even position you may choose to have this at a few pips above the entry just so it covers broker fee's and possibly gives you a very small amount if we dont get to the 61.8%. Over time this can certainly add up. Another strategy is when we hit the 50.0% we can move the second stop to the 38.2% which gives you more reward if price doesnt hit the 61.8%
Depending on your backtest results make sure not to change your strategy or rules unless its tested verifiable and repeatable over time to produce a profit.
As always enjoy and happy trading
Looking for a break and close below the B leg and we should potentially see price fall to our 88.6% which would be our entry level.
Things to keep in mind if we break above our C leg this pattern then becomes invalid. If price falls below X its also classed as invalid.
As always entries stops and initial targets on screen.
Our targets should be moved when we have a clear D completion - also keep in mind you can shoot for a retest of structure for your targets, however I use a 2 target strategy with 38.2% and 61.8% Retrace of the CD move.
Also when we hit our TP1 the second target stop should be moved to the break even position, also keep in mind the break even position you may choose to have this at a few pips above the entry just so it covers broker fee's and possibly gives you a very small amount if we dont get to the 61.8%. Over time this can certainly add up. Another strategy is when we hit the 50.0% we can move the second stop to the 38.2% which gives you more reward if price doesnt hit the 61.8%
Depending on your backtest results make sure not to change your strategy or rules unless its tested verifiable and repeatable over time to produce a profit.
As always enjoy and happy trading
Note
Well that trade went south. All good we expect some losing trades
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