Good Trading requires the Best Charting Tool!- The Alternate Bat pattern is popular for incorporating the 1.13XA retracement.
- Firstly, an important factor is the B point retracement that must be 0.382 retracements or it must be less of the XA leg.
- Furthermore, it only utilizes a 2 or more BC projections.
- The AB = CD pattern within the alternate bat pattern always extends requiring a 1.618 AB = CD calculations.
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What are the Harmonic patterns?
The harmonic trading stemmed from the Gartley pattern. The Gartley pattern appears when the price starts to show correction while moving in an uptrend or a downtrend. With the passage of time, the Gartley pattern became extremely popular and traders started to develop the pattern and now it has several variations such as the alternate bat pattern, shark pattern, AB = CD pattern, the crab pattern, the butterfly pattern, etc. Moreover, specific price structures define the harmonic pattern and the Fibonacci calculations quantify it. A combination of distinct and consecutive Fibonacci retracements and projections is the trademark of the harmonic pattern. The alternate bat pattern is one of the several variations of the harmonic pattern.
What is the Alternate Bat harmonic pattern?
The alternate bat pattern is a variation of the Gartley pattern. Scott Carney developed it in 2003. It is popular for incorporating the 1.13XA retracement as the defining element in the Potential Reversal Zone (PRZ). The alternate bat harmonic pattern is one of the most precise trading patterns that works exceptionally great in the relative strength index (RSI) BAMM set up.
How to identify the Alternate Bat harmonic pattern?
The alternate bat is a unique trading pattern that involves certain precise measurements. Those measures are crucial in order to identify the alternate bat. A pattern must meet the following conditions to be an alternate bat pattern:
- The first important factor is the B point retracement that must be 0.382 retracements or it must be less of the XA leg.
- The alternate bat only utilizes 2.0 BC projections or greater than that.
- The AB = CD pattern within the alternate bat pattern always extends requiring a 1.618 AB = CD calculations.
- Generally, the best structures use 50% retracement at the midpoint.
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