Continuing the theme of the previous articles, I would like to tell you about one more harmonic model of Gartley, which is less common than the others, which is compensated by the increased accuracy in predicting market entry points. Hartley's Harmonic Pattern "Bat" was discovered and mathematically described in 2001 by Scott Carney.
Description of the garnet pattern "Bat"
The view of the bat harmonic model is reminiscent of the Gartley's butterfly pattern.the difference is the proportions of the wings. The main and obligatory condition of this pattern is the following is the retracement 0.886 from the XA movement, which is the main element for defining the Potential Pivot Zone (PPZ). The preferred parameters of the other sectors of the pattern have more maneuverability in their values:
- the retracement at point B from the XA movement should be less than 0.618, ideally 0.50 or 0.382;
- the minimum projection of BC must be equal to 1.618;
- within the "Bat" the harmonic pattern AB=CD is parametrically extended and requires a calculation such as 1.27AB=CD.
The "Bat" harmonic pattern is one of the most accurate patterns, requiring a much lower Stop Loss level than most other representatives of harmonic patterns.
Practical example of the harmonic pattern "Bat"
Harmonic pattern "Bat" works perfectly in practice. Thus, in the presented example (see Fig. 2) of the bullish pattern pattern on the market, it is clearly seen how after the formation of point D near the level of 0.886, the price began to rise. In this case, point B was completed at 50% Fibonacci level. from XA's movement.
Taking into account the trading signals of the Gartley "Bat" harmonic pattern in the trading process, you can achieve a much more accurate determination of the market entry point, which will give you an undeniable advantage over the rest of the market.