This trading tip for the bat pattern focusses on the so-called "BAMM" - (Bat Action Magnet Move) - documented by Scott Carney, in his book "Harmonic Trading of the Financial Markets: Volume Two".
Consider the following emerging bat pattern:-
The BAMM is traded as a breakout from the B level of the potential Bat pattern, to target the D area in the 0.886xa region. But only do this - when the CD direction is with the predominant trend - as it happened to be here.
A strong demand zone, (green dashed lines) also coincides with the D target area.
In this case there was an opportunity to gain about 170 pips from the B level to the target at D.
And of course, at the D at the 0.886xa level, the conventional bullish bat trade was also on offer to be taken - for another 170 pips, at least, with the first target being the B level.
2 Key Tips for trading the BAMM
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