Bat Pattern
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A 5-point (X-A-B-C-D) harmonic pattern discovered by Scott Carney in 2001. B is positioned at a shallow 0.382-0.5 retracement of XA, and D is at the 0.886 retracement of XA. Compared to the Gartley, point D is closer to X, capturing reversals at deeper retracements.
Enter when point D (0.886 XA retracement) is reached and a reversal candlestick pattern is confirmed. Long at point D for a bullish bat, short for bearish.
First target: 0.382 retracement of A to D. Second target: 0.618 retracement of A to D. Maximum target: A level.
Place a stop-loss slightly beyond point X. If point D exceeds X, the pattern is invalid; exit immediately. The bat has D close to X, providing favorable risk-reward ratios.
Volume increase at point D's reversal is ideal. Particularly reliable when volume increases at a D point precisely at the 0.886 XA level.