As we can see, this Bat pattern with almost perfect FIB ratio failed.
But why?
Check out the higher time frame:
Notice that price is near the bottom of an ascending channel.
It is also ideally to notice that when there is an impulse there would be a correction before another impulse.
If the pattern is not aligned with the impulse direction - generally would be a risky trade.
Example: Look for a pattern like this:
These are just my opinions and thoughts. Take care
But why?
Check out the higher time frame:
Notice that price is near the bottom of an ascending channel.
It is also ideally to notice that when there is an impulse there would be a correction before another impulse.
If the pattern is not aligned with the impulse direction - generally would be a risky trade.
Example: Look for a pattern like this:
These are just my opinions and thoughts. Take care
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.