Bat Harmonic Pattern
The Bat pattern is one of the harmonic patterns in technical analysis, used to identify potential reversal points in financial markets. It is named after its resemblance to the shape of a bat.
This pattern is characterized by a deep retracement at point D, making it a strong reversal pattern. It is also one of the most frequently occurring patterns on charts. If you learn how to identify and use this pattern, you can find numerous trading opportunities in the market.
The Bat Harmonic Pattern consists of five key points: X, A, B, C, and D. Once point D is completed, the pattern is fully formed, and this point represents the Potential Reversal Zone (PRZ).
These points are determined based on specific Fibonacci ratios:
• X to A: This is the initial price movement, which forms the foundation of the pattern.
• Point B: A retracement of the XA leg, typically between 38.2% and 50% Fibonacci levels.
• Point C: A retracement of the AB leg, typically between 38.2% and 88.6% Fibonacci levels.
• Point D: The most critical point in the pattern, known as the Potential Reversal Zone (PRZ).
The PRZ is calculated using two main approaches:
1. XA leg retracement at 88.6% Fibonacci level.
2. BC leg extension between 161.8% and 261.8% Fibonacci levels.
Fibonacci Retracements - Bat Pattern (BAT)
Correction of Point D for XA Leg Correction of Point D for BC Leg Correction of Point C for AB Leg Correction of Point B for XA Leg
Types of the Bat Pattern
1- Bullish Bat Pattern
This pattern forms in a downtrend and indicates a potential bullish reversal. A buy trade is initiated after confirmation signals appear at point D.
• Stop Loss: Placed slightly below point X.
• Targets:
• First target: 38.2% Fibonacci retracement of the CD leg.
• Second target: 61.8% Fibonacci retracement of the CD leg.
• Final target: Point C as the ultimate profit target.
Live Chart Example:
2 -Bearish Bat Pattern
This pattern forms in an uptrend and signals a potential bearish reversal. A sell trade is initiated after confirmation signals appear at point D.
• Stop Loss: Placed slightly above point X.
• Targets:
• First target: 38.2% Fibonacci retracement of the CD leg.
• Second target: 61.8% Fibonacci retracement of the CD leg.
• Final target: Point C as the ultimate profit target.
Live Chart Example:
Very Important Note:
The Bat pattern and harmonic patterns in general are more accurate when confirmed using additional tools such as:
• Technical indicators
• Trendlines
• Reversal candlestick patterns
• Support and resistance levels
• Divergence
• Supply and demand zones
• Liquidity zones and order blocks
View the Lightning Pattern (AB=CD) here:
Harmonic Models - Lightning Pattern
Get the Paid Harmonic Course here: Harmonic Trading Course
