Bat Pattern
The bat pattern is a technical analysis charting pattern used to identify potential trend reversals. It is a three-point reversal pattern consisting of a left shoulder, a head, and a right shoulder. The pattern is formed when the price of a security makes a series of higher highs and higher lows, followed by a series of lower highs and lower lows. The pattern is considered complete when the price breaks below the low of the left shoulder.
History of the Bat Pattern
The bat pattern was first identified by Thomas Bulkowski in his book, Encyclopedia of Chart Patterns. Bulkowski noted that the pattern was one of the most reliable reversal patterns, with a success rate of over 70%. He also noted that the pattern was most reliable when the left shoulder and the head were of equal size, and when the right shoulder was slightly larger than the left shoulder.
The bat pattern is similar to the head and shoulders pattern, but with a few key differences. The head and shoulders pattern is a bearish reversal pattern, while the bat pattern is a bullish reversal pattern. Additionally, the head and shoulders pattern is formed when the price makes a series of lower highs and lower lows, while the bat pattern is formed when the price makes a series of higher highs and higher lows.
Comparison Table
| Pattern | Formation | Reversal |
|---|---|---|
| Bat | Higher highs and higher lows | Bullish |
| Head and Shoulders | Lower highs and lower lows | Bearish |
Summary
The bat pattern is a technical analysis charting pattern used to identify potential trend reversals. It is a three-point reversal pattern consisting of a left shoulder, a head, and a right shoulder. The pattern is formed when the price of a security makes a series of higher highs and higher lows, followed by a series of lower highs and lower lows. The pattern is considered complete when the price breaks below the low of the left shoulder. The bat pattern is similar to the head and shoulders pattern, but with a few key differences. For more information about the bat pattern, visit Investopedia, Investing.com, and TradingView.
See Also
- Head and Shoulders Pattern
- Double Top Pattern
- Double Bottom Pattern
- Triple Top Pattern
- Triple Bottom Pattern
- Cup and Handle Pattern
- Flag Pattern
- Pennant Pattern
- Wedge Pattern
- Symmetrical Triangle Pattern
