Hi Traders, I just wanted to share this potential Bat Pattern. price will either go straight up, as we have seen the break above the previous structure level, we would expect a retrace maybe to test this previous resistance which should become support.
So we have 2 options we could take a Long Opportunity at the previous structure level in anticipation of resistance becoming support and keeping stops tight as we dont have any other support levels in this structure but if you look left before this pattern you can see some support structure levels that should be respected, providing us with a safety zone so to speak.
Now if you want to hold on this and simply wait for the D completion for the BAT pattern we would hope price to either go straight up or make a few structure levels on the way up.
Anyway as always guys,
Entry Green - 88.6% I have marked an entry zone which I usually forward my entry on these larger patterns to ensure I get filled.
Stops above X leg @ minimum 113% - or you may use ATR based stops or simply based on your rules you might have a pip based stop.
Targets we would hope to push back down to 1.54134 for T1 and for T2 1.52985 - these are just above 38.2% and 61.8% after we have D completion.
Remember even if we go up to test the X leg before dropping you must adjust your targets as price climbs.
Just above 38.2% and 61.8% so we ensure that we take our profits and don't miss the target level.
Once target 1 is obtained we bring our second stop down to the break even entry level, usually I will place it a few pips below entry to ensure that it covers commission or spread costs so it is actually break even.
Anyway good luck and happy trading
So we have 2 options we could take a Long Opportunity at the previous structure level in anticipation of resistance becoming support and keeping stops tight as we dont have any other support levels in this structure but if you look left before this pattern you can see some support structure levels that should be respected, providing us with a safety zone so to speak.
Now if you want to hold on this and simply wait for the D completion for the BAT pattern we would hope price to either go straight up or make a few structure levels on the way up.
Anyway as always guys,
Entry Green - 88.6% I have marked an entry zone which I usually forward my entry on these larger patterns to ensure I get filled.
Stops above X leg @ minimum 113% - or you may use ATR based stops or simply based on your rules you might have a pip based stop.
Targets we would hope to push back down to 1.54134 for T1 and for T2 1.52985 - these are just above 38.2% and 61.8% after we have D completion.
Remember even if we go up to test the X leg before dropping you must adjust your targets as price climbs.
Just above 38.2% and 61.8% so we ensure that we take our profits and don't miss the target level.
Once target 1 is obtained we bring our second stop down to the break even entry level, usually I will place it a few pips below entry to ensure that it covers commission or spread costs so it is actually break even.
Anyway good luck and happy trading
