Tag Archives: batpattern

Trade: AERO – A Strong Buying Opportunity

Trade: AERO – A Strong Buying Opportunity

I initially posted this chart on 5th of December on advfn board expecting a retrace to lower 8s or early 7s before prices could start moving to 10p area for the completion of Bat Pattern.

AERO Bat Pattern Buying Opportunity
AERO Bat Pattern Buying Opportunity

However, there was new of placing which caused a minor sell off but the bat pattern formation is still valid. In fact now since B point of BAT pattern has been broken upwards, it becomes a great BAMM style  (read more about it here) buying opportunity.  At the moment AERO is looking a very strong Risk/Reward buying opportunity with several technical reasons (Bat Pattern, 3 Drives Pattern, Harmonic Movements)  to buy.

Snapshot:

This is how AERO is looking now. This can give us approximately 1:4 Risk/Reward Ratio.

AERO - A Good Buying Opportunity
AERO – A Good Buying Opportunity

Reasons For Trade:

  1. 3 Drives Pattern is forming potentially taking price to 10p
  2. Bat Pattern is still forming
  3. BAMM entry available right now.
  4. Price is slightly oversold on lower time frames

Stop Placement:

5.25p

Targets:

9.5p

Trade Execution:

On market

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
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Trade: QFI Speculative Buy Opportunity

Trade: QFI Speculative Buy Opportunity

Snapshot:

 

QFI Speculative Buy Opportunity
QFI Speculative Buy Opportunity

Even though there are chances of it falling over to 10p area due to HNS pattern formation (see below a chart from  November 20th, 2015) there can be a speculative buy opportunity right now for a short term gain.

QFI Head and Shoulders Pattern
QFI Head and Shoulders Pattern

Reasons For Trade:

  1. Almost oversold
  2. 100sma providing support around 14p
  3. 14p area is neckline of HNS pattern which may throw one last bounce
  4. Expectation of news can create hype on Monday
  5. Possible Bat Pattern formation if price holds 14p price level

Stop Placement:

12.5p

Targets:

First: 18p

Second: 21p

Trade Execution:

On Market now for a good entry level

Concerns:

Speculative buy

Planned News/Events Expected:

Expected

Post Execution Review:

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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BAMM The Bat Harmonic Trading Pattern!

BAMM The Bat Harmonic Trading Pattern!

Bat Pattern is one of the most Risk/Reward Ratio favorable harmonic patterns in the directory of harmonic patterns. It completes at 88.6 fibonacci confluence with 161.8 or 261.8.

Bat Harmonic Pattern
Bat Harmonic Pattern

Harmonic Trading
In his book Harmonic Trading Volume 2, Scott Carney described another phenomenon that occurs during the formation of a BAT Pattern. It is called BAMM.

BAMM stands for Bat Action Magnet Move. According to Scott Carney when CD leg of a Bat Pattern forms and it exceeds point B of the potential Bat Pattern, the price action starts to experience a Magnetic Attraction towards 88.6 Fibonacci level where the Bat Pattern is expected to complete. The price action tends to get pulled towards D point.

BAMM The Bat Harmonic Trading Pattern Trigger
BAMM The Bat Harmonic Trading Pattern Trigger

This behaviour is not 100% consistent but is very common and can be used to make more profits.

Usually once the CD leg exceeds point B, the price action comes back to retest the zone between point B and point C before resuming direction towards point D at 88.6. Similar to 2618 Trade Entry Technique we can follow 2618 Trade Entry Technique rules to enter the market in this zone with a target completion at 88.6 i.e. point D. Stops will have to be either beyond point C or based on Supply/Demand zones in CD leg.

BAMM The Bat Harmonic Trading Pattern
BAMM The Bat Harmonic Trading Pattern

At point D we can take profits on this trade and enter a new trade at the completion of the Bat Pattern.

Leave me a comment. I would like to hear your opinions and suggestions.

Have a great trading time!

-TradeYodha

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position

USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position

Snapshot:

USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position
USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position

Reasons For Trade:

  1. Fibonacci confluence of 78.6 of overall impulse leg, 61.8 of another impulse leg, 161.8 fib extension of recent retracement.
  2. Flat candle in zone suggesting new orders started from there which has fibonacci confluence with 88.6 Fibonacci retracement level and Fibonacci extension of recent retracement. This makes an area very string due to bat pattern formation.
  3. Level on Level demand area. So we will have to combine.
  4. This impulse leg has string ERC candles which broke previous structure.
  5. Due to 161.8 extension of recent retracement this zone also has completion of Butterfly Pattern too which coincides with flat candle and bat pattern completion on the same point.

Stop Placement:

Below flat candle

Targets:

First: 38.2 fibonacci retracement
Second: 61.8 fibonacci retracement

Trade Execution:

  1. Wait for confirmation in the zone.
  2. As there are 2 fibonacci confluence levels creating level on level demand zone take multiple positions using zoning technique.

Concerns:

None

Planned News/Events Expected:

Whole next week is packed with USD CAD  news

MonOct 26 10:00am USD New Home Sales 468K 546K 529K
TueOct 27 8:30am USD Core Durable Goods Orders m/m -0.4% 0.0% -0.2%
USD Durable Goods Orders m/m -1.2% -1.1% -2.3%
10:00am USD CB Consumer Confidence 97.6 102.5 102.6
11:20am CAD Gov Council Member Lane Speaks
WedOct 28 8:30am USD Goods Trade Balance -58.6B -64.9B -67.2B
10:30am USD Crude Oil Inventories 3.4M 3.7M 8.0M
2:00pm USD FOMC Statement
USD Federal Funds Rate <0.25% <0.25% <0.25%
ThuOct 29 8:30am CAD RMPI m/m 3.0% 1.2% -6.8%
USD Advance GDP q/q 1.5% 1.6% 3.9%
USD Unemployment Claims 260K 264K 259K
USD Advance GDP Price Index q/q 1.2% 1.5% 2.1%
9:10am USD FOMC Member Lockhart Speaks
10:00am USD Pending Home Sales m/m -2.3% 1.1% -1.4%
FriOct 30  8:30am CAD GDP m/m 0.1% 0.3%
USD Employment Cost Index q/q 0.6% 0.2%
USD Core PCE Price Index m/m 0.2% 0.1%
USD Personal Spending m/m 0.2% 0.4%
9:45am USD Chicago PMI 49.5 48.7
10:00am USD FOMC Member Williams Speaks
USD Revised UoM Consumer Sentiment 92.6 92.1

 

Post Execution Review:

Pending

View it on TradingView

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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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GBPAUD Bat Pattern Psychological Number Long Trade

Trade: GBPAUD Bat Pattern Psychological Number Long Trade

Snapshot:

GBPAUD Fibonacci Cluster Bat Pattern Psychological Number Long Trade
GBPAUD Fibonacci Cluster Bat Pattern Psychological Number Long Trade

Reasons For Trade:

  1. Bat Pattern
  2. Psychological Number 2.0800
  3. This zone has been a strong demand zone in past

Stop Placement:

  1. Below Bat pattern’s X point

Targets:

  1. 38.2 Fib Retracement back up
  2. 61.8 Fib Retracement back up

Trade Execution:

  1. Wait for confirmation because the stop loss level is too wide and there have been few spikes in the zone previously.

Concerns:

  1. Price may touch 78.6 fib level of previous impulse leg XA and go back up as there is also fib confluence and ABCD pattern completion

Planned News/Events Expected:

TueOct 27  5:30am GBP Prelim GDP q/q
8:30pm AUD CPI q/q
AUD Trimmed Mean CPI q/q
WedOct 28 8:30pm AUD Import Prices q/q
ThuOct 29 5:30am GBP Net Lending to Individuals m/m
8:30pm AUD PPI q/q

Post Execution Review:

Pending

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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EURJPY BAT PATTERN FOREX TRADE IDEA LONG ENTRY

EURJPY BAT PATTERN FOREX TRADE IDEA LONG ENTRY

Snapshot:

EURJPY Bat Pattern Long Forex Trading
EURJPY Bat Pattern Long Forex Trading

Reasons For Trade:

  1. Bat Pattern forming.
  2. Due to sudden drop EUR is reaching oversold area. On H4 it is already oversold but on H1 it is not.
  3. Spikes close to red zone in chart show a Demand area. So price may come back to retest this that is when H1 will be oversold. This can give is a Double Bottom formation.

Stop Placement:

  1. Below point x of bat. Looking left I see another demand area on previous impulse leg. So including that too.

Targets:

  1. First: 38.2 Fibonacci Retracement
  2. Second: 61.8 Fibonacci Retracement

Trade Execution:

  1. At 38.2 close half of the trade and move stops to break even.

Concerns:

Demand are on previous impulse leg is wide and is beyond stop loss limits.

Planned News/Events Expected:

MonOct 26  5:00am EUR German Ifo Business Climate

Post Execution Review:

Pending

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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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EURJPY Bat Pattern Short Trading

EURJPY Bat Pattern Short Trading

Snapshot:

EURJPY Bat Pattern Short Trading
EURJPY Bat Pattern Short Trading

Reasons For Trade:

  1. Bat Pattern

Stop Placement:

  1. As the 1.618 Fix extension is close to point A, and previous structures are also there we need to have bigger PRZ.

Targets:

  1. Take 1:1 target
  2. Extended target at 38.2 because we have 50sma and 200sma there which may not let us go below 38.2.  See concerns below.

Trade Execution:

  1. Take 1:1 target and  close 50%
  2. Move stop to break even

Concerns:

  1. Price has been consolidating. This may invalidate the pattern as what happened in EURUSD few days ago.
  2. SMAs are just below so possibility of having extended targets is low.

Planned News/Events Expected:

ThuOct 22  7:45am EUR Minimum Bid Rate
8:30am EUR ECB Press Conference
FriOct 23 3:00am EUR French Flash Manufacturing PMI
3:30am EUR German Flash Manufacturing PMI

Post Execution Review:

22-Oct-2015: Closed this order. I was waiting for confirmation to take position. Today’s price action has invalids this trade idea. So orders cancelled.

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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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EURUSD Bat Pattern and Gartley Pattern Long and Short Trading

EURUSD Bat Pattern and Gartley Pattern Long and Short Trading

Snapshot:

EURUSD Bat Pattern and Gartley Pattern Long and Short Trading
EURUSD Bat Pattern and Gartley Pattern Long and Short Trading

Reasons For Trade:

  1. For long entry we have Gartley pattern completing just above 1.1320
  2. For short entry we have a bat pattern completing around 1.1430 level

Stop Placement:

  1. For long Gartley entry stop needs to be 1 ATR i.e. 13 pips below A.  See concerns below.
  2. For Short Bat Pattern we can have stops just above A around 1.1470

Targets:

  1. First Targets at: 38.2 Fibonacci
  2. Second Targets at : 61.8

Trade Execution:

  1. Take first target and close 60%

Concerns:

  1. 10sma is in the middle of 50sma and 200sma causing market to get stuck at the moment. So if market goes on to complete Bat pattern it will be in uptrend. That means we will have to be careful about our extended targets.
  2. If the market goes to complete gartley pattern we may not be in down trend. We will still be consolidating as long as it respects point A. However we will have 50sma and 200sma above us that means we will again have to be careful with our extended targets.
  3. Also for gartley pattern stop placement is not clear as the next level is below 1.1279 which gives us a huge risk area.

Planned News/Events Expected:

TueOct 20 8:30am USD Building Permits
ThuOct 22  7:45am EUR Minimum Bid Rate 0.05% 0.05%
8:30am EUR ECB Press Conference
USD Unemployment Claims
FriOct 23 3:00am EUR French Flash Manufacturing PMI 50.2 50.6
3:30am EUR German Flash Manufacturing PMI

Post Execution Review:

22-Oct-2015: Closed this order. I was waiting for confirmation to take position. Today’s price action has invalids this trade idea. So orders cancelled.

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

AUDUSD Bat Pattern & Gartley Pattern for Long & Short #Forex #Trading

AUDUSD Bat Pattern & Gartley Patterns for Long & Short

Snapshot:

AUDUSD Bat Gartley Patterns for Long Short Forex Trade
AUDUSD Bat Gartley Patterns for Long Short Forex Trade

Reasons For Trade:

  1. Bat Pattern for Long Trade entry
  2. Gartley Pattern and Bat Pattern for Short Trade Entries

Stop Placement:

  1. For Long Bat Pattern it has to be below the X point. We see that there is 7200 level too. So stop has to go below that. This increases ours overall risk in trade.
  2. For Gartley Pattern based short entry the stop has to be above X point however we have another structure high just before that. So we will include that too. We use ATR (at the moment it is 13 pips). So stop = high+atr. It is however better to take short entry based on Bat Pattern as it gives us better R/R ratio.

Targets:

  1. For Long Bat Pattern , first target will be at 38.2 retracement and second target will be at 61.8 level.
  2. For Short Gartley Pattern first target is 38.2 retracement and second target can be start of the bat pattern
  3. For Short Bat Pattern , first target will be at 38.2 retracement and second target will be at 61.8 level.

Trade Execution:

  1. For Bat pattern we can be aggressive and front run orders before 0.7220 level.
  2. For Short Gartley Pattern wait for market confirmation using Double Top/Over Bought/Bollinger Bands/2618 type of entry technique.
  3. For Short Bat Pattern  we can be aggressive.

Concerns:

For Gatley pattern there is not much R/R ratio is not good for the first target. As SMAs are just below completion of gartley, price may just come back to retest them and go upwards.

Planned News/Events Expected:

TueOct 20 8:30am USD Building Permits

Post Execution Review:

Pending

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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AUDCAD SHORT & LONG IDEA (BAT PATTERN, 50SMA) #FOREX

AUDCAD SHORT & LONG IDEA (BAT PATTERN, 50SMA) 

AUDUSD Short Long BAT Pattern Trade
AUDUSD Short Long BAT Pattern Trade

View It On TradingView

Reasons For Trade:

1. Price may try to retest 50sma/200sma cross over to give us a short opportunity.
2. Target will be to complete advanced pattern where we will have another opportunity to go long. Wait for confirmation there.

Stop Placement:

  1. Above 50 sma at least and previous high

Targets:

  1. First short target at the completion of Bat Pattern.
  2. Long Position will have 2 targets: First at 38.2 Fib retracement where stops will come to break even after closing 50% of position. Second target will be 61.8 Fib retracement which is close to retest of B point of Bat Pattern

Trade Execution:

  1. See above

Concerns:

  1. None

Planned News Expected: (UK Time)

TueOct 20  1:30am AUD Monetary Policy Meeting Minutes
WedOct 21 3:00pm CAD BOC Monetary Policy Report
CAD BOC Rate Statement
CAD Overnight Rate 0.50% 0.50%
4:15pm CAD BOC Press Conference

Post Execution Review:

Pending

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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