Trading Improvement Tutorial: Price Action & Harmonic Patterns (I) BAT Bat Pattern
Trading Improvement Tutorial: Price Action & Harmonic Patterns (I) BAT Bat Pattern
Basic concepts of morphology
The Bat pattern is perhaps the most precise pattern in the entire arsenal of harmonic trading tools.
This pattern contains many clear elements that define an excellent Potential Reversal Zone (PRZ).
This pattern usually represents a deeper retest of support or resistance, often very quickly.
Swift reversals from the Bat Pattern PRZ are common.
In fact, valid reversals from bat patterns often involve very extreme price action.
The pattern contains a powerful 0.886 XA retracement, which is the defining element in the PRZ.