Re: Bearish Crab vs. Bearish Bat Patterns
Hi, xnxsxx!
No. Not a mistake.
The bearish bat pattern initiates with a similar X-A, A-B, B-C pattern, except for one important distinction: The B point in the Bat never should exceed the 50% X-A retracement.
Once this 50% X-A retracement occurs, the A-B retracement to C is allowed to range between 38.2% to 88.2%.
Finally, a second distinguising feature is where D ends. As you mentioned, in the Crab Pattern, D does extend beyond the X-A in the range of 224% to 361.8%. However, the Bat pattern considers only ONE precise point for D to complete the pattern, which is found at the 88.6% retracement of X-A.
OVERALL:
Of the two pattern, the Bat Pattern requires a more regid set of rules (e.g.: narrower X-A retracement for B and a single point of reversal for D), but makes for the most strictly precise definition of a Potential Reversal Zone (Mr. Carney of Harmonic Trader created the pattern in 2001. His website (www.harmonictrader.com) has plenty of resources on Crab, Butterfly, Gartley, AB=CD, "Three Drives" and the newer 5-0 Pattern.
- Dalcindo
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