BAT FORMATION ENTRY OPTIONS
Here is a perfect example of how neutral sentiment can be in the markets on the DAILY TIMEFRAME.
SCENARIO 1
Lets suppose we are anticipating a BAT formation, which hasn't fully revealed itself, but we want to anticpate trade opportunites. The CD LEG of the BAT presents a great shorting opportunity because of previous structure shows a level of resistance. If triggered it gives us a favorable Risk Reward Setup of 5:1
SCENARIO 2
We can place a BUY order at the 618 FIB Level to anticipate a move to the upside. This presents a 1.5 to 1 Risk Reward Setup. Not a great Risk Reward profile, but a conservative trade nonetheless.
SCENARIO 3
We can follow through for the completion of the BAT pattern and enter at the completion point. It presents a clear cut exit if the trade doesn't play out. Remember we only place our STOPS where we know the trade won't play out. Great Risk Reward of 5:1!!!
All the best,
Lewipapers
SCENARIO 1
Lets suppose we are anticipating a BAT formation, which hasn't fully revealed itself, but we want to anticpate trade opportunites. The CD LEG of the BAT presents a great shorting opportunity because of previous structure shows a level of resistance. If triggered it gives us a favorable Risk Reward Setup of 5:1
SCENARIO 2
We can place a BUY order at the 618 FIB Level to anticipate a move to the upside. This presents a 1.5 to 1 Risk Reward Setup. Not a great Risk Reward profile, but a conservative trade nonetheless.
SCENARIO 3
We can follow through for the completion of the BAT pattern and enter at the completion point. It presents a clear cut exit if the trade doesn't play out. Remember we only place our STOPS where we know the trade won't play out. Great Risk Reward of 5:1!!!
All the best,
Lewipapers