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Bat

BAT PATTERNBat Pattern: Is a retracement Pattern and a trend continuation pattern. As market consolidates Bat pattern gives you a lower price on where to trade with minimal of risk as prior to a continuation of the market trend. Rules or Fib Ratio of Bat: XA point - impulsive leg - ideal AB point - 38.20% to/but not equal to 61.80% XA leg Price touch 61.80% XA leg could be a Gartley. Modified: Price break 61.8% XA but close just above 61.8% XA is still a valid Bat (bull version). Ideal B point: Price Ranging between the 50% - 61.80% XA BC point - atleast 38.2% AB but must not be equal or exceed the pattern's A point price. D completion - 88.60% XA leg. Buy in its Bull version. How to trade the Bat Pattern: Entry: 88.60% or once pattern is completed. Wait for confirmation - Price Action SL: Just below Pattern's X point (Envisaging Support) TPs: Depends on the Objective of your trade plan. TP1: 38.20% of AD leg (Highest point to Completion in its bullish version. TP2: 61.80% of AD leg.
Education
by TheForexSamurai
16 types of Bat advanced pattern by Alexander NikitinHey, mates. Here's the research work on bat patterns that I have done about two years ago. I described the bats according to the criteria mentioned on the chart. Then I did the backtesting of 5 year period on 5Min timeframe on different pairs. This one is AUDUSD results. The percentage shows the probabilty of price to hit 0.382AD before it hits 1.13XA. If no number - this means no patterns of this type were found or the quantity is extremely small to show some relevant statistical results. Enjoy it. Next time I will post other pairs, so follow me to be notified:)
Education
by Alexander_Nikitin
79
5 EASY STEPS TO TRADE THE BAT SETUPSTAGE 1: THE BULLISH IMPULSE LEG A bullish impulse leg is a strong move in price action to the upside. The impulse leg can be a mixture of bullish and bearish candles, but must have a bullish overall direction. The start of the impulse leg should be marked as X and the top of the impulse leg should be marked as A. STAGE 2: B LEG RETRACEMENT Now that you have identified your X to A impulse leg you are now looking for the B leg, which is a retracement of the X to A impulse leg. Take your Fibonacci retracement tool and draw from your X leg to your A leg. The crucial Fibonacci levels you are looking for are the 50.00% and 61.60% Price action must at least touch the 50.00% retracement but cannot touch the 61.80% retracement. As you can see by the illustration, the candle does not need to close below the 50.00% retracement but must at least spike through. The bullish Bat setup will be invalid if price action touches the 61.80% retracement of the X to A move. STAGE 3: C LEG RETRACEMENT Once you have identified a valid X to A impulse leg and a B leg retracement, you are now looking for a valid C leg retracement. Take your Fibonacci retracement tool and draw from your A leg to your B leg. The crucial Fibonacci retracement level you are looking for is the 61.80% Price action must at least touch the 61.80% but cannot spike above the A leg resistance. The candle does not need to close above the 61.80% but must at least spike through. The bullish Bat setup will be invalid if price action spiked above the A leg resistance. STAGE 4: D LEG COMPLETION Now that you have a valid X, A, B and C move you are looking for the final leg in price action at which point you will buy the chosen currency pair. Take your Fibonacci retracement tool and draw from your X leg to your A leg. You are looking for a 88.60% which will now give you a valid D leg completion of the bullish Bat setup. STAGE 5: PLACING YOUR TARGETS When looking to take targets on the bullish Bat Setup the first step is to use your Fibonacci retracement tool. With your Fibonacci retracement tool draw from the A to D leg, you are looking for target 1 at the 38.20% and target 2 at the 61.80%. To protect the profits you have accumulated at target 1 it is advised you move your stop loss to breakeven once the 38.20% target 1 has been attained, thus giving you a risk free trade to target 2. KEY NOTES & RULES: When trading the bullish Bat Setup, the pattern is meant to be traded at 88.60% D leg completion only. If you believe the pattern is unfolding but price is only at point B, be patient and wait until price reaches the D leg completion. The power of the pattern comes from converging Fibonacci levels of all points from X to D. Point B must at least touch the 50.00% retracement but cannot touch the 61.80% from the X to A move. Point C must touch the 61.80% but cannot spike above the A leg resistance. Point D is complete when price action touches the 88.60% retracement of the X to A move. Stop loss must be placed below the X leg structure support. Stop loss must also be a minimum of a 1:1 risk reward to the 38.20% target 1. Target 1 at the 38.20% retracement of the A to D move. Target 2 at the 61.80% retracement of the A to D move. CURRENCY PAIR: This setup like any other is more profitable with certain currency pairs, you should do your own back testing on this prior to trading. CANDLE COLOUR: Blue = Bullish Candle White = Bearish Candle DISCLAIMER: Please note I am only providing my own trading information and techniques for your benefit and insight, you should do your own due diligence and not take this information as a trade signal.
Education
by UnknownUnicorn180388
150
GBPUSD: A good lesson on harmonics pattern invalidationGBPUSD: A good lesson on harmonics pattern invalidation. GBPUSD formed very good bullish BAT + bullish Butterfly pattern on 26 Sep 2016. 26 Sep daily candle closed above the critical price levels. A long should enter after that. this pair did move up afterwards. However, there was extreme price action on 3 Oct 2016. it was a gap down below the whole PRZ and closed as a very bearish candle even below point X. Stop loss should have been triggered and we should call for a invalidation for the patterns and cease longing this pair until further patterns form.
Education
by pipstrading
USDJPY: Bearish Bat + ExplanationHi Traders, Here is a bearish bat pattern setup on USDJPY with D pattern completion at 103.950. Read below if you are unsure how to identify a bat pattern. 1) Look for an impulse leg, which will mark the beginning of the pattern. I like the analogy of seeing the impulse leg as a "Sore Thumb" high or low point, something that immediately sticks out on the chart. This is the X point. 2) Grab your fibonacci retracement tool and draw from the X (sore thumb high or low) to the lowest/highest point of the move. This is the A point. 3) Price must touch the 50% retracement of the XA leg, BUT NOT TOUCH the 61.8%. This is the B point. 4) Draw a fibonacci retracement from the A to B point, we are looking for AT LEAST a 61.8% retracement. If price exceeds the A point the pattern is invalid. This is the C point. 5) To find the completion at D, draw a fibonacci retracement from XA and if price reaches the 88.6% retracement the pattern has completed. This is the D point. 6) I place stops 10-15 pips above or below the X leg. 7) Targets go at the 38.2% and 61.8% retracement of the A to D leg. Hope that helps! Remember to leave me a like or comment below if this helped you. Good luck and good trading, Luke
Education
by Beebags
Harmonic Patterns ratio and examplesHi, Above, some harmonic patterns that i often look for (bullish ones) These patterns, when identified, have a good risk/reward ratio. They allow traders to enter into the market with minimal risk. Obviously, you need some other confirmations before taking the trade on the pattern completion. If the point D occurs with some divergence on classic oscillators (RSI / Macd, Sto), on a bottom (or top, if pattern is bearish) of a trendline / channel, previous support/resistance levels, supply/demand zone...then there are good probabilities to see price react on the completion of the pattern. There are plenty of patterns, but this selection, from my side, is a good start for those who want to learn harmonic pattern. Below some examples that have worked nicely (this don't work each time, this would be too easy ;)
FX:XAUUSDEducation
by pixi
3
How To Trade The Bat Pattern. Hi Traders, After the very positive feedback received from the Gartley Pattern explanation, I have drawn another illustration this time explaining my interpretation of the Bat Pattern For those who have not yet seen the explanation for the Gartley Pattern I have attach the link below. Above Is an illustration of a complete Bat Pattern and the rules and ratios needed to trade this pattern. First things first, grab your Fibonacci tool and draw from the X to A leg of the initial move or impulse leg. The Fibonacci ratio's you are looking for are the 0.50% and the 0.618%, price MUST at least touch or spike through the 0.50% but not touch or exceed the 0.618%. The price reversal zone is shown in the white box. Now you have the B leg we are looking for the C leg which is a retracement of the A to B move. Once again grab your Fibonacci tool and draw from the A leg to the B leg, you are looking for a minimum of the 0.618% retracement. On the C leg the price reversal zone is a little wider, price MUST hit the 0.618% but not exceed the A leg, which is once again shown in the illustration above. Once you have the X A B and C legs you are looking for the final piece of the jigsaw which is the D leg completion and the area you are looking to buy. there are a couple of different ways to get the D leg however they both end up at the same price, for me personally I use the Fibonacci retracement tool. To get the D leg take your Fibonacci tool and draw from the X to A leg which will give you a 0.886%. Once price falls to the 0.886% all criteria's are met, at which point you would buy in anticipation that price will rise. TARGETS: When looking to take targets on this pattern the first step is to once again use your Fibonacci tool. Take your Fibonacci tool and draw from the C to D leg, you are looking for the 0.382% and 0.618%. If this is the method you are looking to use for targets you would have your broker take off half of your position at the 0.382% and the other half at the 0.618% To protect the profits you have accumulated it is advised to move stop loss to breakeven once the 0.382% target 1 has been attained, thus giving you a risk free trade and money in the bank. STOP LOSS: When looking to place your stops there are again many ways this can be done, but should always be placed below the X leg. Your risk reward should be a minimum of 1:1 on every trade to the 0.382%, if this can not be achieved then I would not personally take the trade. CURRENCY PAIR: This pattern like any other and is more profitable with certain currency pairs, you should do your own back testing on this before trading the pattern. I hope this is a more in-depth insight to advanced patterns in particular the Bat Pattern. I am available via private message for any questions you may have. WEBSITE: www.UKForexSignals.com DISCLAIMER: Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.
Education
by UnknownUnicorn180388
45
Thoughts about BAT pattern. Some tips and secrets. Part XIV.Hello, everyone. Welcome back to another edition of "thoughts about bat pattern". Today we'll continue discussing bat pattern types. We'll look at SNSI and SFSI types. They are very similar to HSNSI and HSFSI I talked in my last edition: As you see the difference is only in XA leg. With that being said let's skip to some statistics. As usual I will first remind you the avarage success rate of bats for eurusd , gbpusd and audusd. By success rate I mean the probability of price action to hit 0,382AD BEFORE 1,113XA. It is critical! So, average success rate for bats: On eurusd it is 53,52%, gbpusd – 52,39%, audusd – 51,53%. We have these results if we trade ALL the bats we can find. I’ve been testing SNSI and SFSI on M5 TF on 4-year period data and got the following features (I will only talk about eurusd , gbpusd and audusd as examples): Frequency: SNSI: On eurusd I found 30, on gbpusd – 28 and on audusd – 28. Not very frequent type. SFSI: On eurusd I found 9, on gbpusd – 12 and on audusd – 9. A rare type. Success rate: SNSI: On eurusd it is 40%, on gbpusd – 57,14%, on audusd – 35,71%. SFSI: On eurusd it is 77,77%, on gbpusd – 33,33%, on audusd – 44,44% As you see trading SNSI type only on gbpusd and trading SFSI only on eurusd is a way to improve your trading results. Aussie is not friendly to either of these types)) Ok, mates. That is all for today. Next time I will explain HSNDP and HSFDP. If you find the information interesting – click “thumb-up”. If you don’t want to miss the next edition – subscribe. Hope to see you again.
Education
by Alexander_Nikitin
1
Thoughts about BAT pattern. Some tips and secrets. Part XIII.Hey, traders. Welcome back to another edition of "thoughts about BAT pattern". Today we'll continue to discuss bat pattern types. We already know about Four types: HSNSP see it here: SNSP see it here: HSFSP see it here: SFSP see it here: These four have two common features. Their CD leg is not interrupted by a retracement more than 0,382AB and their A and B points don't form a double top/bottom. Today we'll take too more types: HSNSI and SFNSI. All the features and notes are drawn on the chart. Here I will only give some statistics. As usual I will first remind the avarage success rate of bats for eurusd, gbpusd and audusd. By success rate I mean the probability of price action to hit 0,382AD BEFORE 1,113XA. It is critical! So, average success rate for bats: On eurusd it is 53,52%, gbpusd – 52,39%, audusd – 51,53%. We have these results if we trade ALL the bats we can find. I’ve been testing HSNSI and HSFSI on M5 TF on 4-year period data and got the following features (I will only talk about eurusd , gbpusd and audusd as examples): Frequency: HSNSI: On eurusd I found 47, on gbpusd – 60 and on audusd – 67. One of the most frequent types) HSFSI: On eurusd I found 42, on gbpusd – 25 and on audusd – 38. Less frequent type. Success rate: HSNSI: On eurusd it is 48,93%, on gbpusd – 55%, on audusd – 47,76%. HSFSI: On eurusd it is 47,61%, on gbpusd – 60%, on audusd – 36,84% As you see this pattern has more than average success rate on gbpusd and less than average success rate on eurusd and on audusd . Trading this type on gbpusd and not trading it on eurusd and on audusd is a way to improve trading. Ok, mates. That is all for today. Next time I will explain SNSI and SFSI. If you find the information interesting – click “thumb-up”. If you don’t want to miss the next edition – subscribe. Hope to see you again.
Education
by Alexander_Nikitin
Thoughts about bat pattern. Some tips and secrets. Part XII.Hey, traders. I’m back and we have another edition of “Thoughts about Bat pattern”. Today we’ll continue discussing bat pattern types. I’ll talk about HSFSP and SFSP types. First, I will remind you average success rate of bat pattern. One has this rate if he trades EVERY bat he can find. As usual, three pairs for illustration: On eurusd it is 53,52%, gbpusd – 52,39%, audusd – 51,53%. Now, the types’ features 1) HSFSP: Let’s decode the name. “HS” – XA is interrupted by a deep (at least 0,382AB) retracement. “F” – BC is not straight. “S” – A and C don’t form double top/bottom. “P” – CD is not interrupted by a deep (at least 0,382AB) retracement. I’ve been testing HSFSP on M5 TF on 4-year period data and got the following features (I will only talk about eurusd, gbpusd and audusd as examples): Frequency: On eurusd I found 22, on gbpusd – 16 and on audusd – 22. Not very frequent type) Success rate of HSFSP type: On eurusd it is 45,45%, on gbpusd – 37,5%, on audusd – 59,09%. As you see this pattern has more than average success rate on audusd and less than average success rate on eurusd and on gbpusd. Trading this type on audusd and not trading it on eurusd and on gbpusd is a way to improve trading. 2) SFSP: Let’s decode the name. “S” – XA is not interrupted by a deep (at least 0,382AB) retracement. “F” – BC is not straight. “S” – A and C don’t form double top/bottom. “P” – CD is not interrupted by a deep (at least 0,382AB) retracement. I’ve been testing SFSP on M5 TF on 4-year period data and got the following features (I will only talk about eurusd, gbpusd and audusd as examples): Frequency: On eurusd I found 15, on gbpusd – 17 and on audusd – 8. Not very frequent type, either Success rate of SFSP type: On eurusd it is 60,00%, on gbpusd – 47,05%, on audusd – 35,50%. As you see this pattern has more than average success rate on eurusd and less than average success rate on audusd and on gbpusd. Trading this type on eurusd and not trading it on audusd and on gbpusd is a way to improve trading. Ok, mates. That is all for today. Next time I will explain HSNSI. If you find the information interesting – click “thumb-up”. If you don’t want to miss the next edition – subscribe. Hope to see you again.
Education
by Alexander_Nikitin
10
Thoughts about bat pattern. Some tips and secrets. Part XI.Welcome back, traders. It’s Wednesday and we have another edition of “Thoughts about Bat pattern”. Today we’ll continue discussing bat pattern types. Today we’ll talk about SNSP type. SNSP bat type is the most perfectly looking bat type. Let’s decode the name. “S” – XA is not interrupted by a deep (at least 0,382AB) retracement. “N” – BC is straight. “S” – A and C don’t form double top/bottom. “P” – CD is not interrupted by a deep (at least 0,382AB) retracement. I will remind you average success rate of bat pattern. As usual, three pair for illustration: On eurusd it is 53,52%, gbpusd – 52,39%, audusd – 51,53%. These results we’ll have if we trade EVERY bat pattern we can find. I’ve been testing SNSP on M5 TF on 4-year period data and got the following features (I will only talk about eurusd, gbpusd and audusd as examples): Frequency: On eurusd I found 22, on gbpusd – 25 and on audusd – 28. Not very frequent type) Success rate of SNSP type: On eurusd it is 72,72%, on gbpusd – 52,00%, on audusd – 64,28%. As you see this pattern has more than average success rate on eurusd and audusd and less than average success rate on gbpusd. Trading this type one eurusd and audusd and not trading it on gbpusd is a way to improve trading. (To tell the truth, gbpusd in not very much friendly to bats)) Ok, mates. That is all for today. Next time I will explain HSNSI. If you find the information interesting – click “thumb-up”. If you don’t want to miss the next edition – subscribe. Hope to see you again. To know more about the way of differentiating bat types, visit Part X (link is attached as related idea)
Education
by Alexander_Nikitin
Thoughts about bat pattern. Some tips and secrets. Part X.Welcome back, traders. It’s Wednesday and we have another edition of “Thoughts about Bat pattern”. Today we’ll continue discussing bat pattern types. Or… If we treat bats a vivid creatures I’d better say species)). In my last edition I told you mostly how I discovered types but not about the types themselves. I got lots of feedback and messages asking me to explain the rules of distinguishing the types. So, I decided to start from the very beginning. For the sake of simplicity I will only explain one type per edition. Let’s get it started then. But first, remember the critiria of distinguishing: 1. Is the pattern bullish or bearish? 2. Is XA straight or not straight? (“S” or “HS”) 3. Is BC straight or consolidating? (“N” or “F”) 4. Does A and C correlation form a double top/bottom or single top/botto? (“D” or “S”) 5. Is CD straight or not straight? (“I” or “P”) Now I should explain what I mean saying “straight”. When I say “straight” I mean the move is not in terrupted by a specific size retracement. This size equals min BC requirement or 0,382AB. I usually use square tool to establish the needed range. Then I just drag the square to the place I neeed to check. Or I clone it. Sometimes I just measure the amount of pips in 0,382AB and then measure the retracements within bat’s legs. Square tool is the most convinient). See picture 1. If we have XA leg containing this size retracement then XA is marked “HS”. If we don’t have retracement of this size then XA is marked “S”. The same rule is for CD leg. If CD is interrupted by 0,382AB size retracement it is marked “I”. If not, then it’s marked “P”. What is straight or not straight BC? It’s just a comparison with AB. Does BC look more consolidataing than AB or vice versa. Counting bar may help here. If AB has 2 bars while BC has 5 – we almost always have an “F” type BC. “F” type BC form cnannels, triangles, wedges while AB serves as a Flag staff. If AB is consolidation also – then we won’t have “F” type BC but “N” type. Remember, we are to compare the two legs. They either move with equal speed (sometimes BC moves faster) or BC moves slower. First scenario is for “N” type, second is for “F”. You are to train your eyes to see the proportions. Note that BC cannot be one-bar move (it invalidates the whole pattern). I use Jason Stapleton’s rules for distinguishing double top/bottom when compare A and C placement. Ok, suppose you have a bat pattern. To find out what type it is you are to answer the list of 5 questions I enumerated above. Now you can distinguish type by yourself. Let’s discuss the types in details. Last time I started discussing HSNSP and SNSP. I briefly described their features. Having lots of requests from my subscribers asking me to explain each type in more details I decided to explain these types once again. From now on I will explain one type per edition.... SEE continuation in comments... Tradingview doesn't allow too long descriptions))
Education
by Alexander_Nikitin
3
Thoughts about bat pattern. Tips and secrets. Part II.TIP #3. This tip is mostly connected with the rules. You don’t need to invent your own rules, because all rules are already invented. You just need to choose a set of rules that suits best to your personality. How can you know what rules suit your personality? Do backtesting. Scroll the chart back in history and trade the Market using this set of rules as if real time, bar by bar, candle by candle. Only MANUALLY. After you have spent a thousand hours backtesting some set of rules, I assure you it will become your alter ego (second nature). Hahaha. What is 1000 of hours? If you are backtesting 10 hours a day, then a 1000 hours = 100 days = 3+ months. Your habits will change little by little, your beliefs will change, your personality will change. Of course, this set of rules will suit your personality)). You should always have the result of your backtesting in front of your eyes. While doing backtesting you were to write down all the trades, results and times. Then you were to draw an equity curve and a pip (percentage) curve. These drawings are NOT what you need to have in front of your eyes. Pip curve should be a steadily rising curve, a series of higher highs and higher lows. This curve MUST NOT have drawdowns more than 30%. Otherwise, you are to change some rules, optimize the set. Equity curve will repeat the move of a pip curve if you don’t use MM. If you use MM, increasing the position size, then it should look like a rising parabola. Note that 10% drawdown in the pip curve may easily cause a 30% drawdown in the equity curve. Especially when the drawdown began immediately after you have raised your position size. No matter what MM rules you have)). See picture 1 and picture 2. This time you should not change the trading rules optimizing the set. It won’t help. This time ONLY portfolio will solve the problem. How to add pairs to your portfolio? Backtest another pair and see the curves. If they are similar to picture 1 and 2 then add this pair. If they are not, then discard the pair. After you have chosen pairs consisting your portfolio, write the results of ALL pairs down in order of their appearance (hope you have written the times of trades, otherwise start all over from the very beginning)))). Draw the curves of the united results. If your 30% drawdowns haven’t disappeared it means that your portfolio consists of pairs moving the same way. For example, you portfolio consists of eurusd and usdchf only)). In other cases you huge drawdowns will disappear. See picture 3 and 4. Print these drawings. This time they ARE what you need in front of your eyes). If your realtime trading curves are not similar to the curves you had in backtesting it means that you are BREAKING your rules or you make some other execution errors. Find these errors and eliminate them. It was a preface. Now we came to the point. What is TIP #3? It’s as simple as this: don’t trade bats on USDJPY M5 and USDCAD M5. They show NEGATIVE expectancy. Hope you liked my thoughts. If yes press like button. Follow me on tradingview and you get much more tips and secrets for free.
Education
by Alexander_Nikitin
EURAUD: Reviewing The Tape (Education not a trade idea)I've already written my "Trading Recap" blog post for today but I wanted to share something with you guys. For you guys that have been following along with my blog you know that I've been working on an article looking at professional athletes and professional traders. One of my main comparisons is the amount of preparation and review that both do. Just like Peyton Manning or Tom Brady do after every game, after each trading day I review the tape, meaning that I go back through my trading day and critique myself. After all, in this industry we are our own bosses so if we don't do it who will? Last night I posted a trade looking for a potential breakout to the upside on EURAUD, although we did test the highs of our previous structure level we never got the break that I was looking for and it ended up being a scratch trade (breakeven). This morning in our Warroom meeting Jason Stapleton fired off 2618 idea for this same pair. (I'll attach a link to the FREE 2618 training at the bottom of this post). In the live room we ended up finding a bearish Cypher at the same level and ended up getting short as well. After banking some good pips, I spend the rest of our session going through the rest of my portfolio and basically but this pair on the back burner. BIG MISTAKE, if only i would have paid more attention to it, i would have seen that IF our 2618 setup were to rally to 2nd targets THEN we'd also have a Bat pattern completion which we plant a stop & reverse at. So yeah I left a few pips on the board today but the important part is that I was able to identify my mistake and turn it into a learning experience. For those who don't take the time to review their day, well that mistake may continue to be a future mistake. Thanks for taking the time to read this and I'll see you next week at the Technical Trader Workshop!!! FREE 2618 Training Lesson: www.youtube.com 2015 FREE Technical Trader Workshop: promos.tradeempowered.com
Education
by Akil_Stokes
10