Forex MT4/MT5 Indicators Forex Indicators & Strategies Download
Harmonic bat pattern indicator MT4 is a Meta trader indicator used to detect a specific type of harmonic pattern in the forex market. The harmonic bat pattern indicator is simply a 5-point retracement structure. It was first discovered by Scott Carney in 2001. The harmonic bat pattern indicator is considered a comprehensive pattern indicator.
The Bat pattern is similar to the Bartley pattern in that it is a retracement and continuation pattern that occurs when the trend that is going on in certain directions reverse to its older trend for a certain more period some time it again starts to move on its original direction.
This is helpful for both long term and short term traders.
The main theory behind this pattern is based on prime time movements.
The basic idea of using this indicator is to identify the key turning points. These key turning points will give us key price levels. It is also defined as a five-point chart pattern that can point towards either a bullish or bearish breakout. It is an accurate pattern and requires a smaller stop loss than most harmonic patterns.
Bullish Bat pattern Indicator MetaTrader4
The Bat pattern is perhaps the most accurate pattern within the entire Harmonic patterns. The bats are a five-point chart pattern that could lead to either bullish or bearish breakouts. The bat pattern is quite similar to crab or butterfly when we compare as appearance vise but they are a bit different in ratio. The bullish bat looks like a letter M while the bearish looks like letter W.
One of the most important things to note about the bullish and bearish bat are that both of these bat types can be either reversal or breakout patterns. For bullish reversal, it is important to check the bullish bat in the bear trend and for the bearish reversal, it is important to check the bullish trend.
If the pattern is significant within the chart then it is less important to look for the trend. The pattern possesses many distinct elements that outline a superb Potential Reversal Zone. The pattern typically represents or resistance which will frequently be quite sharp. As we all know the greater the risk the higher the reward.
When it comes to harmonic bat pattern indicator it is a high risk to reward ratio. The bat pattern has step by step rules so there is no guesswork. As the guesswork does not work all the time so that is a great advantage in bat pattern for the traders to work on the set patterns and avoid any mistake that could lead to potential disaster.
How to trade the bat pattern:
The harmonic bat pattern strategy is useful to trade the bat pattern. The bat pattern market strategy is a component of the Harmonic trading patterns system of trading.
Harmonic Patterns PDF & Indicator
The bat pattern strategy is suitable for all the time frames and all the markets, which is one of the main advantages of using that bat pattern but as we know there is always a different side of the story which is sometimes unknown to most of us we need to remember that on lower periods utilizing the Bat pattern comes with its challenges because the Bat pattern tends to show up on less frequent on lower time frames.
The Bat pattern is similar to the Cypher harmonic pattern but it follows different Fibonacci ratios. One of the key ways to differentiate a Bat structure from a Cypher pattern is if it doesn’t go beyond the half Fibonacci retracement of the then it’s a Bat, otherwise, it can turn into a Cypher structure.
The Fibonacci retracement and ratios are the most important part of harmonic trading. With the rapid advancement in the technical analysis field, we can find such patterns as bat patterns to help us plot Fibonacci ratios.
How to draw harmonic Bat patterns:
The bat pattern strategy is a four-leg reversal pattern that follows certain Fibonacci rules. The first thing to look for when we are looking to identify the Bat pattern is the impulsive leg. If we are looking for a strong move up or down it will depend on if we either have a bullish Bat structure or a bearish Bat structure.
The bat pattern market strategy has been not only tested but used across different asset classes e.g. currencies, commodities, and stocks
The harmonic bat pattern indicator is suitable for all time frames and all markets; however, we must take under consideration that bat formation trading on lower time frames using the bat sample marketplace strategy comes with its challenges because the bat sample tends to reveal up on less chance of repeating on lower time frames.
Harmonic bat pattern is one of the most important and favorite of traders due to its effectiveness or reliability of its buy and sells signals.
Bearish Bat Pattern Strategy With Indicators
The spirit of the Bat pattern is that it’s a chart formation that might help us to enter and incorporate into a trend when it’s resuming after a correction. Also, this pattern can give us an honest entry when the market definitively changes its trend.
Therefore, it’s a comparatively common harmonic pattern that happens when the trend changes its direction then returns to its previous direction.
Harmonic bat pattern allows a spit entry system to capture profits if and when the breakout progresses. With each of the trade entries from raising the stop and profit targets only because the trend moves higher,
this manner when the pullback occurs, you’ll get an opportunity to retrain some profit and therefore the downside is restricted by the trailed stops.
One of the most important things for the trader is to get a good price and when we look at harmonic bat patterns it allows the trader to enter into the market at a good price when the pattern is about to end and the trend renews.
The high rewards don’t come without the higher risks but when we use the bat pattern it allows us to get the profit within less risk and ensures the higher profit as it involves step by step procedure which ensures fewer mistakes less risk and high rewards.
