Euro Aussie throwing a pair of patterns at us- looks like heading into the weekend we are still knee-deep in bat week. This 4hr chart shows a large bearish bat that agrees with the direction of the daily chart. Amidst the A, B and C points of this bearish bat, there is potentially a bullish bat leading to our D point!
The C point of the initial bearish bat could potentially reverse at any point between 38.2% and 88.6% of the previous wave. The D point of any bat is calculated at 88.6% of its XA wave. Taking this into consideration, should price reach the full 88.6% retracement at point C, I will be entering long as this also site as the exact retracement for the D point at the bullish bat between points A, B and C.
Should price reverse earlier, I will not enter and take the bat as per usual protocol. Should price close below the C point of the bearish bat, then this would render BOTH patterns invalid.
It would be wise to take the bullish bat with a trailing stop loss incase the D point is not reached and the bearish pattern does not complete.
Good lock with this one- plenty space for a good return!
Bat ratios
B: 0.382-0.5
C: 0.382-0.886
D: 1.618-2.618
xD: 0.886
The C point of the initial bearish bat could potentially reverse at any point between 38.2% and 88.6% of the previous wave. The D point of any bat is calculated at 88.6% of its XA wave. Taking this into consideration, should price reach the full 88.6% retracement at point C, I will be entering long as this also site as the exact retracement for the D point at the bullish bat between points A, B and C.
Should price reverse earlier, I will not enter and take the bat as per usual protocol. Should price close below the C point of the bearish bat, then this would render BOTH patterns invalid.
It would be wise to take the bullish bat with a trailing stop loss incase the D point is not reached and the bearish pattern does not complete.
Good lock with this one- plenty space for a good return!
Bat ratios
B: 0.382-0.5
C: 0.382-0.886
D: 1.618-2.618
xD: 0.886
