The Bat pattern is a simple XABCD harmonic pattern that consists of four price swings and five pivot points — X, A, B, C, and D. This Bat pattern is a precise harmonic pattern that developed by Scott M Carney in 2001. It is believed to have a good risk reward ratio. With the harmonic chart pattern, you may be able to predict how the price might move in the near future.

As with other XABCD harmonic patterns, the Bat pattern starts from point X and swings through points A, B, and C, eventually ending at point D, making two impulse waves and two correction waves. The XA and CD swings are the impulse waves, whereas the AB and BC swings are correction waves.

As you can see, the AB swing is a retracement of the XA swing, while the BC swing is a retracement of the AB move. Then comes the CD swing, which extends beyond the B point but doesn’t get to the X point. The Bat pattern can have a bullish or bearish version.