TRT ICHI MONICS – THE BAT PATTERN
THE BAT PATTERN
NOTE: Images taken from the books on Harmonic Trading by Scott Carney
From the above figures, do you notice anything different compared to the Gartley Pattern?
You are right. The Bat Pattern is different from the Gartley in terms of the B Point Retracement. This time the B Point Retracement is a range from 38.2% to 50.0%. Please take note that it does not exceed 50.0%.
You are right. The Bat Pattern is different from the Gartley in terms of the B Point Retracement. This time the B Point Retracement is a range from 38.2% to 50.0%. Please take note that it does not exceed 50.0%.
Let us take a look at the features of the Bat Pattern:
a. Retracement of the B point within a range of 38.2% to 50.0%.
b. Retracement of the C point within a range of 38.2% to 88.6%
c. BC projection between 161.8% and 261.8%
d. Constraint of 88.6% Retracement of the XA leg.
a. Retracement of the B point within a range of 38.2% to 50.0%.
b. Retracement of the C point within a range of 38.2% to 88.6%
c. BC projection between 161.8% and 261.8%
d. Constraint of 88.6% Retracement of the XA leg.
Let us draw the Pattern using the following procedures:
1. Draw a Fibonacci Retracement Grid starting from point X to point A to get where point B retraced. In this case it is at 50.0%.
1. Draw a Fibonacci Retracement Grid starting from point X to point A to get where point B retraced. In this case it is at 50.0%.
2. Draw a Fibonacci Retracement Grid starting from point A to point B to get where point C retraced. In this case it is 38.2%
3. Project BC by drawing a Fibonacci Extension from C to B using C as Point of Origin and Point of Termination. From the Bat Pattern image this should be from 161.8% to 261.8% . We see 0.05 where 161.8% is and we see 0.03 where 261.8% is. Since he Yellow Line has already exceeded the 161.8%, we take 261.8% and mark 0.03 as our tentative point D or PRZ.
4. The next step is to draw the Constraint which is an 88.6% Retracement of the XA leg. We see that this 88.6% Retracement falls also at 0.03 and further validates the same point obtained thru the 2.618 extension of the BC leg. This constraint is the final requirement for determining where point D or the PRZ lies.
5. This figure shows the Pattern with the corresponding Fibonacci measurements.
6. We now draw the Pattern by connecting the points of the two Triangles. This is the complete Bullish Bat Pattern.
7. Just like in our last lesson, to make the pattern useful, we have to draw a final Fibonacci Retracement Gridline starting from Point A to Point D to establish our TRT Critical Action Zones.
8. To better appreciate the Pattern, I would like us to take a look at some examples.
This is VITA with a Bullish Bat Pattern.
This is PLC with a Bearish Bat Pattern.
NOTE: Sometimes some figures appear as decimals. At other times they appear as percentages. To convert decimals to percentage just move the decimal point two places to the right. For example 1.618 is expressed in percentage as 161.8%.
Next Lesson: THE PERFECT BAT PATTERN
“TRT Ichi-Monics – The Trading Signals of Ichi Moku Kinko Hyo and the Trading Parameters of Harmonics”
NOTE: This is a trading lesson previously posted in my BooKAKA Premium. Subscribers get these lessons weekly. It is posted here so that BooKAKA Premium Subscribers can review them again and for others to see what they are missing from my posts in my BooKAKA Premium.