How to trade bat-pattern in non-USD currency? Look at this
Here I am going to explain how to trade a bat pattern in non-USD currency pairs. let's use AUD/CHF last week for example
As you can see in 4H chart, B point and D point are determined by the Fib retracemen of XAt. Expecially for D point, it need to be 88.6% of XA, the price can't go far away from it. This is condition 1. For the bat pattern, the final reversal point is around 88.6% of the large trend--XA, and the previous small correction trend (AB) should not exceed 61.8% of the XA. Therefore, the use of XA retracement can help us to judge whether B and D meet the requirements.
For point D, this is also around 2.618 BC. 1.618-2.618 times of the BC leg of is satisfied. So in fact we look for the zone made up by the specific Fib rate. Only need to use XA retracement and BC multiple to find the overlapping areas. That's where we need to short.
But what is more important is to check if there is a signal in the price that there is a strong resistance here and where the target is. Learn from the history, this is the important support and resistance after the Swiss franc 2015, as you can find by moving prices forward. Although the price pierced 88.6% XA, but the closing price was unable to stay above the level., this is the actual signal of the price blocked! At the same time, the RSI indicator gave us a short signal. So the trade of harmonic is to look for the area where the price reverses and then wait and see what the price action is. Take the opportunity to short!
The first target is usually at the A-D 38.2% retracement,.Here you can see the price near the point several times after the rebound, indicating the existence of support, I slightly increase of 5 points, as the target position.
Then wait and keep patient.
As you can see in 4H chart, B point and D point are determined by the Fib retracemen of XAt. Expecially for D point, it need to be 88.6% of XA, the price can't go far away from it. This is condition 1. For the bat pattern, the final reversal point is around 88.6% of the large trend--XA, and the previous small correction trend (AB) should not exceed 61.8% of the XA. Therefore, the use of XA retracement can help us to judge whether B and D meet the requirements.
For point D, this is also around 2.618 BC. 1.618-2.618 times of the BC leg of is satisfied. So in fact we look for the zone made up by the specific Fib rate. Only need to use XA retracement and BC multiple to find the overlapping areas. That's where we need to short.
But what is more important is to check if there is a signal in the price that there is a strong resistance here and where the target is. Learn from the history, this is the important support and resistance after the Swiss franc 2015, as you can find by moving prices forward. Although the price pierced 88.6% XA, but the closing price was unable to stay above the level., this is the actual signal of the price blocked! At the same time, the RSI indicator gave us a short signal. So the trade of harmonic is to look for the area where the price reverses and then wait and see what the price action is. Take the opportunity to short!
The first target is usually at the A-D 38.2% retracement,.Here you can see the price near the point several times after the rebound, indicating the existence of support, I slightly increase of 5 points, as the target position.
Then wait and keep patient.
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.