What is a bearish bat pattern?

For a bearish Bat pattern,point X should be at a significant high. Conversely, for a bullish Bat pattern, point X should be at a significant low. Below is the pictographic representation of the Bat Harmonic Chart Pattern. In the below USD/CHF four hours chart, we can see the formation of a bullish Bat pattern.

What is a bat pattern?

The Bat is defined by the.886 retracement of move XA as Potential Reversal Zone. The Bat pattern has the following qualities: Move AB should be the .382 or .500 retracement of move XA. Move BC can be either .382 or .886 retracement of move AB. If the retracement of move BC is .382 of move AB, then CD should be 1.618 extension of move BC.

Is a bat harmonic bullish or bearish?

A bat harmonic can be either bullish or bearish. This depends on where it appears on a price chart – at the bottom of a downtrend or uptrend. But if it has all the conditions and Fib ratios, it is indeed a harmonic bat pattern. Just as it is with many harmonic patterns, there is a bullish and a bearish version of the bat pattern.

What does a bullish bat pattern look like?

The bullish Bat occurs in a downtrend and signals a potential reversal. The pattern looks like M. Bullish Bat Pattern b. Bearish Bat The bearish Bat appears in an uptrend and identifies a downward movement. The pattern resembles W. Bearish Bat Pattern In the bullish pattern, the X leg is at a low level.