Bullish Bat
At the completion price “D” of the Bullish Bat, a potential reversal for the price to rise is expected.
The Bullish Bat is defined by the following Fibonacci ratios:
- Move AB is a (Case a.) 0.382 or (Case b.) 0.50 retracement of the first upwards impulse XA
- BC can be either (Case a.) a 0.382 or (Case b.) 0.886 retracement of AB
- In Case a.; CD will be a retracement of 1.618 below B
- In Case b.; CD will be a retracement of 2.618 below B
- CD will be a retracement of 0.886 from the original impulse origin X
Bearish Bat
At the completion point of the Bearish Bat pattern, we expect a potential reversal for the price to fall.
The Bearish Bat is defined by the following Fibonacci ratios:
- Move AB is a (Case a.) 0.382 or (Case b.) 0.50 retracement of the impulse XA
- BC can be either (Case a.) a 0.382 or (Case b.) 0.886 retracement of AB
- In Case a.; CD will be a retracement of 1.618 above B
- In Case b.; CD will be a retracement of 2.618 above B
- CD will be a retracement of 0.886 from the original impulse origin X
Bat Pattern with PatternSurfer
On the arrival of a Bat, PatternSurfer will scan and display all coordinates, including the Actual Pattern Completion Price (D) as per the market prices, as well as the Ideal Pattern Completion Price (an exact D as per the strict Fibonacci ratio). D defines the entry point for the Bat pattern.
To maintain a profitable risk-reward ratio, the price at X can be kept as a conservative stop-loss for the trade.
With PatternSurfer, users are also able to identify the formation of a Bat before price D is reached. This is called an “Approaching” pattern, and traders will be made aware of the expected (Ideal) Completion Price, and the current Actual completion price which is approaching the Ideal D.