The Alternate Bullish Pattern-How to Identify it on The Chart

Today  we shall be
identifying the Alternate Bat Pattern and promised in my last post. This
pattern formation occurs frequently on the financial market…The alternate bat
pattern is no different from the bat pattern formation.To make it clearer the Harmonic
Bat Pattern is the precursor of the alternate bat pattern.

The Alternate Bullish Pattern:
This pattern as
illustrated in the image below is more like an M-type formation that makes use
of the 113% XA extension of the Fibonacci tool, as the defining support
level in the Potential Reversal Zone{PRZ}.And the BC projection use an extreme
harmonic ratio that is at least a 200% extension but more often appears as a 261.8%
or 361.8%.

 

In the above image the 88.6% retracement is the minimum support
level to help us define the completion of the Alternate Bat Pattern, while the
meeting of the 113% extension of  XA leg and
the extreme BC projections highlights the Potential Reversal Zone{PRZ}. And
most importantly the 113% XA extension should not be exceeded, price can pierce
it or in some cases a candle can close below it, but the next candle must close
above it that way it is a still valid set-up.You might want to read
my post on A
Cheat Sheet or a Quick Guide In Identifying Harmonic Patterns
Easily

 

EurJpy:15Minute Alternate
Bullish Bat Pattern:

In this example trade set-up below, the EurJpy possessed a distinct
M-type structure that possessed a 50% mid-point(B) and the 113% extension of XA
leg. The alignment established the structure as an Ideal Alternate Bat pattern
instead of the standard version(Bat Pattern).

 

The structure took well over 20 hours to develop on the 15min.
chart. The 113% extension marked the critical low of the bearish market. The
convergence of the 113% XA leg and the 200% BC projection pinpointed the
support level.we can see how price rallied after testing the potential reversal
zone.
The Alternate Bearish Pattern:
This pattern as
illustrated in the image below is more like a W-type formation that makes use
of the 113% XA extension of the Fibonacci tool, as the defining support
level in the Potential Reversal Zone{PRZ}.And the BC projection use an extreme
harmonic ratio that is at least a 200% extension but more often appears as a 261.8%
or 361.8%.

 

In the above image the 88.6% retracement is the minimum support
level to help us define the completion of the Alternate Bat Pattern, while the
meeting of the 113% extension of  XA leg and
the extreme BC projections highlights the Potential Reversal Zone{PRZ}. And
most importantly the 113% XA extension should not be exceeded, price can pierce
it or in some cases a candle can close above it, but the next candle must close
below it that way it is a still valid set-up.
UsdJpy:5Minute Alternate
Bearish Bat Pattern:
In this example trade set-up below, the EurJpy possessed a distinct
W-type structure that possessed a 50% mid-point(B) and the 113% extension of XA
leg. The alignment established the structure as an Ideal Alternate Bat pattern
instead of the standard version(Bat Pattern).

 

The structure took well over 4 hours to develop on the 5min. chart.
The 113% extension marked the critical low of the bullish market. The
convergence of the 113% XA leg and the 314% BC projection pinpointed the
support level. We can see how price declined after testing the potential
reversal zone.
The patterns identification continues on my next post..Use the
comment box below to express yourself!