Similar to Gartley with tighter ratios: the B retracement is shallower, and the last retracement is deeper, reaching 88.6% of the first leg, very close to the starting point.
A worked example that explains the rule, not a stock price · prices on the right axis, sessions under the volume bars
More detail
Two differences from Gartley: B is less than 50% and D sits at 88.6%. The closeness of D to X makes the distance to the invalidation level short, which is why traders care about it. But a short distance does not make a reversal more likely.
Reading it stage by stage
XAThe first rise. Its length is the basis of all the ratios after it.
ABA retracement between 38.2% and 50% of XA.
BCA partial bounce that does not exceed A.
CDA deep fall to about 88.6% of XA.
Confirmationa close back above the last small high after D.
Recognition rules
Leg XA is a clear rise.
B retraces between 38.2% and 50% of XA.
C retraces between 38.2% and 88.6% of AB.
D reaches about 88.6% of XA, and CD reaches between 1.618 and 2.618 of BC.
D does not break X.
Confirmation is a close back above the last small high after D.
Measuring the target
Point C is the first reference: an entry after D at $116.6 and a reference at $141.4. The invalidation level is X at $100.0. The calculation comes from the chart itself: X at $100.0 and A at $150.0. So B sits at $127.5, which is 45% of the leg, and D sits at $105.7, which is 88.6% of it. Because D is close to X, the distance to the invalidation level is small. This makes position sizing easier, but it says nothing about the chance that the reversal works. A market that falls hard to D can continue to X and beyond.
Where it fools you
Mixing it up with Gartley: the depth of B is what separates them. If B goes past the 50% ratio, it is not a Bat.
A break of X is not a "deeper Bat" but the end of the whole reading.
The pattern is rare with the correct ratios, so seeing it often on your screen means the tolerance is wider than it should be.
The time span also matters: a last leg much longer than the earlier legs means the market has changed character. The ratio alone is not enough to judge the shape.
Open the daily timeframe for any symbol and draw the pattern yourself. Your drawing is saved per symbol in your browser, and the terminal does not name or detect the pattern.
╱ Trendline
⇕ MeasureTarget equals pattern height
We do not detect chart patterns with a numeric rule: telling them apart takes judgment on the chart. Candlestick patterns with a numeric rule are detected daily by the candlestick pattern scanner.
Mirror image: Bearish Bat
The same pattern turned upside down, with the same rules in the opposite direction. What was a top becomes a bottom. The trigger, target and invalidation all flip direction.
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