PATTERNS "BAT" and "CAT".
Strange as it may seem, but not only bulls and bears can be found on the market, but also a couple of cats and even a bat!
But don't be afraid, these animals have come to help you get rich in the new year.
Let's go!
The Bat pattern.
The bat is a 5-point pattern that can indicate a bullish or bearish breakout.
What does it look like?
The pattern consists of five points:
X is the beginning, from this point the price makes a significant movement;
A - here the price unfolds, forming the first vertex;
B is a pullback, which can be from 38% to 50% of the X – A movement.
C is the price movement, which can range from 38% to 88% of the A – B movement. It is worth noting that C should not go above the point A.
D is the price reversal, after movement C. The shortest movement of all other points. At this point we are looking for an entry into the transaction, you can use the Fibonacci lines. The movement from point D can be 88% of the movement of X-A, and can go above point A.
Risks
The stop loss can be set below the D point, but not below the X point.
The CAT JUMP pattern.
This pattern is characterized by a strong downward movement and, with proper trading, can bring huge profits.
How to find it?
The pattern appears in situations of strong movement, usually caused by bad news.
The following pattern will be observed on the graph:
1. A sharp drop in price, sometimes with a gap;
2. Rollback to the bottom line of the gap;
3. After which there is a long and strong fall.
How to trade?
To begin with, you need to find a strong drop with a gap, as correctly accompanied by a strong volume.
After that, we are waiting for a pullback to the bottom line of the gap and a reversal – this is where you can enter into a deal.
Risks
The stop loss is placed above the lower gap line.
It is worth noting that from time to time the price may go above the lower gap line.
In rare cases, the price reaches the upper level of the gap, and then falls.
It is important to note that the fall lasts from one month or more, which is why this pattern is used by long-term traders.
Important
It is worth recalling that there are alternative patterns: an INVERTED CAT JUMP and a BEARISH BAT PATTERN.
Both models work the same way, only in the opposite direction.
These figures are very profitable, with proper trading.
For example, a fall after a gap and a rollback can be 50% or even 70%, in the CAT JUMP pattern.
Whatever pattern you trade, I wish you good luck and a lot of profit in the new year!
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
But don't be afraid, these animals have come to help you get rich in the new year.
Let's go!
The Bat pattern.
The bat is a 5-point pattern that can indicate a bullish or bearish breakout.
What does it look like?
The pattern consists of five points:
X is the beginning, from this point the price makes a significant movement;
A - here the price unfolds, forming the first vertex;
B is a pullback, which can be from 38% to 50% of the X – A movement.
C is the price movement, which can range from 38% to 88% of the A – B movement. It is worth noting that C should not go above the point A.
D is the price reversal, after movement C. The shortest movement of all other points. At this point we are looking for an entry into the transaction, you can use the Fibonacci lines. The movement from point D can be 88% of the movement of X-A, and can go above point A.
Risks
The stop loss can be set below the D point, but not below the X point.
The CAT JUMP pattern.
This pattern is characterized by a strong downward movement and, with proper trading, can bring huge profits.
How to find it?
The pattern appears in situations of strong movement, usually caused by bad news.
The following pattern will be observed on the graph:
1. A sharp drop in price, sometimes with a gap;
2. Rollback to the bottom line of the gap;
3. After which there is a long and strong fall.
How to trade?
To begin with, you need to find a strong drop with a gap, as correctly accompanied by a strong volume.
After that, we are waiting for a pullback to the bottom line of the gap and a reversal – this is where you can enter into a deal.
Risks
The stop loss is placed above the lower gap line.
It is worth noting that from time to time the price may go above the lower gap line.
In rare cases, the price reaches the upper level of the gap, and then falls.
It is important to note that the fall lasts from one month or more, which is why this pattern is used by long-term traders.
Important
It is worth recalling that there are alternative patterns: an INVERTED CAT JUMP and a BEARISH BAT PATTERN.
Both models work the same way, only in the opposite direction.
These figures are very profitable, with proper trading.
For example, a fall after a gap and a rollback can be 50% or even 70%, in the CAT JUMP pattern.
Whatever pattern you trade, I wish you good luck and a lot of profit in the new year!
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
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