Bullish Alt-Bat
The Alt-Bat harmonic pattern is a variation on the definition of a traditional Harmonic Bat. The Bullish Alt-Bat pattern is defined by the following strict series of Fibonacci ratios between each leg:
- Move AB is a 0.382 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 2.0 below B
- In Case b.; CD will be a retracement of 3.618 below B
- CD will be a retracement of 1.13 from the original impulse origin X
Bearish Alt-Bat
The Bearish Alt-Bat pattern is defined by the following Fibonacci ratios between each leg. At point D, a potential reversal of price direction is expected – the price is expected to fall.
- Move AB is a 0.382 retracement of the first downwards 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 2.0 above B
- In Case b.; CD will be a retracement of 3.618 above B
- CD will be a retracement of 1.13 from the original impulse origin X
Alt-Bat Pattern Identification with PatterSurfer
On arrival of an Alt – Bat pattern, PatternSurfer will 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 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 Alt-Bat pattern before point 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.