Bearish bat harmonic chart pattern suggests a short entry upon completion of the pattern. This post explains the way to find or draw a bearish bat harmonic chart pattern, and the way to trade a bearish bat harmonic chart pattern.In the first part of the post, we will learn to draw the pattern with the fibonacci retracement tool and with out the fibonacci retracement tool.

**How to draw a bearish bat harmonic chart pattern on price chart ?**

To draw a harmonic chart pattern, first of all we will find the X and A points of the pattern. X and A points of the pattern is found at the top and bottom of a bearish trend respectively. In the second step, we will draw a fibonacci retracement tool from X to A to find the B point of the pattern. The B point should be between the 38.2-50% fibonacci retracement of XA.

To find the B point without fibonacci retracement tool, we will use the following formulas-

**(IA)**AB= (price at X point-price at A point) X 0.382

**(IB)**Price level at 38.2% of XA= (result found from formula (IA) + price at point A)

**(IIA)**AB= (price at X point-price at A point) X 0.50

**(IIB)**Price level at 50% of XA= (result found from formula (IIA) + price at point A)

The B point of this pattern should lie between the price levels found from formula (IB) and (IIB). This satisfies the AB/XA=0.382-0.50 condition of the pattern. Look at the following illustration.

In the next step, we are going to find the C point of the bearish bat harmonic chart pattern. To find the C point, we will draw a fibonacci retracement tool from A to B. The C point should lie between the 38.2-88.6% fibonacci retracement of AB.

To find the C point without fibonacci retracement tool, we will use the formulas-

**(IA)**BC= (price at B point-price at A point) X 0.382

**(IB)**Price level at 38.2% of AB= (price at point B-result found from formula (IA))

**(IIA)**BC= (price at B point-price at A point) X 0.886

**(IIB)**Price level at 88.6% of AB= (price at point B-result found from formula (IIA))

The C point of this pattern should lie between the price levels found from formula (IB) and (IIB). This satisfies the BC/AB=0.382-0.886 condition of the pattern. Look at the following illustration.

In this step, we will find the D point of the pattern. To find the D point, we will draw a fibonacci retracement tool from point B to point C. The D point should lie between the 161.8-261.8% fibonacci retracement of BC.

To find the D point without fibonacci retracement tool, we will use the formulas-

**(IA)**CD= (price at B point-price at C point) X 1.618

**(IB)**Price level at 161.8% of AB= (price at point C+result found from formula (IA))

**(IIA)**CD= (price at B point-price at C point) X 2.618

**(IIB)**Price level at 261.8% of AB= (price at point C+result found from formula (IIA))

The D point of this pattern should lie between the price levels found from formula (IB) and (IIB). This satisfies the CD/BC=1.618-2.618 condition of the pattern. Look at the following illustration.

In case of this harmonic pattern, D point should be reconfirmed to satisfy the condition left. To reconfirm the D point, draw a fibonacci retracement tool from X to A. The D point should lie at the 88.6% fibonacci retracement of XA.

To find the D point without fibonacci retracement tool, we will use the formulas-

**(IA)**AD= (price at X point-price at A point) X 0.886

**(IB)**Price level at 88.6% of XA= (price at point A+result found from formula (IA))

The D point of this pattern should lie at the price levels found from formula (IB). This satisfies the AD/XA=0.886 condition of the pattern. Look at the following illustration. You can see, the condition is not fulfilled here, this is because the D point is confirmed at 78.6% fibonacci retracement of XA and 2.618% fibonacci retracement of BC. Two resistance level are lied together at point D here, and 2.618% is the highest limit for the previous step.

Remember, the D point is the entry point of the pattern and it is confirmed by two conditions. A reliable D point should satisfy the both conditions. In this case it fails two meet the second condition AD/XA=0.886 because it reached the highest limit of the CD/BC=1.618-2.618 condition.

**How to trade the bearish bat harmonic chart pattern?**

A short entry is suggested when the D point of the pattern is confirmed. The stop loss for the order can be placed at X point. The profit target for the order should be placed at the 38.2, 50% or 61.8% fibonacci retracement level of CD or AD.

B and C points can also be traded, if the entries are confirmed by other technical analysis tool(s)

**Dear Traders,**

Hope this post will enrich your technical analysis knowledge. If you have any question, you can drop a comment below, and you can subscribe this blog to receive the updates.

**Thank You & Good Luck**

To trade under a bearish forex market it needs some accurate and sure shot forex signals.

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