THE AUSTRALIAN ALTERNATE BAT
The Alternate Bat pattern is a precise harmonic pattern. The pattern incorporates the 1.13 X to A retracement, as the defining element in the Potential Reversal Zone (PRZ). The B point retracement must be a 0.382 retracement or less of the X to A leg. The Alternate Bat utilizes a minimum 2.0 B to C projection. In addition, the AB=CD pattern within the Alternate Bat is always extended and usually requires a 1.618 ABCD calculation.
I have used a 2.0 ABCD calculation in the AUDCAD to get a proper, tight PRZ. If the price comes in the zone, I suggest to watch price action briefly:
1. Wait till the candle closes INSIDE the PRZ, with both borders hit by the up and down wick of the closing candle.
2. Switch to a lower timeframe to execute the order when seeing a confirmation candle like a doji or a bearish engulfing.
3. I've set up 2 targets to cover half of my position at target 1 and I will set my stop-loss to break-even. The other half gets covered at target 2.
May the pips be with you,
~ Chartist
I have used a 2.0 ABCD calculation in the AUDCAD to get a proper, tight PRZ. If the price comes in the zone, I suggest to watch price action briefly:
1. Wait till the candle closes INSIDE the PRZ, with both borders hit by the up and down wick of the closing candle.
2. Switch to a lower timeframe to execute the order when seeing a confirmation candle like a doji or a bearish engulfing.
3. I've set up 2 targets to cover half of my position at target 1 and I will set my stop-loss to break-even. The other half gets covered at target 2.
May the pips be with you,
~ Chartist
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.