The Bat pattern is a 5-point retracement structure discovered by Scott Carney in 2001. It has specific Fibonacci measures for each point within its structure, and it is essential to mention that D is not a point but rather a zone where the price tends to reverse. It is also referred to as a potential reversal zone (PRZ). The retracement of point B of the primary XA section must be less than 0.618, more preferably 0.50 or 0.382 and the PRZ consists of 3 converging harmonic planes. The first is the retracement of the primary XA section of 0.886, the second is an extended AB = CD pattern, usually 1.27 AB = CD, and lastly, the minimum BC projection is 1.618.
The first target would be a retracement of AD of 382, and the second target would be a retracement of AD of 618. A common stop level would be behind the X-point. Conservative traders could seek further confirmation. Bat patterns can be bullish and bearish. TradingView has a smart XABCD pattern drawing tool that allows users to recognize a 5-point reversal pattern on a chart.