On TCS 60 mins chart, we have a potential Long opportunity at the D leg completion of bullish BAT setup . The price reversal zone is between 2424 & 2404
The PRZ zone is only a guideline of where we will be paying attention for trade setups and opportunity's.
Stop loss would be placed below X leg structure support .
Target 1 - 2487 Target 2 - 2525
(When looking to take targets on the bullish Bat Setup the first step is to use your Fibonacci retracement tool. With your Fibonacci retracement tool draw from the A to D leg, you are looking for target 1 at the 38.20% and target 2 at the 61.80%. )
To protect the profits you have accumulated at target 1 it is advised you move your stop loss to breakeven once the 38.20% target 1 has been attained, thus giving you a risk free trade to target 2.
Trade with Care Gulz.
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Potential Reversal Zone (PRZ) Tips ( Educational) • Look for an area of convergence. History has proven that a convergence of Fibonacci ratio projections, especially specific harmonic price patterns, can identify critical technical areas of support and resistance. When a distinct pattern possesses a congregation of ratio projections in a defined price range, it is possible to determine the potential future direction of the trend. • Look for where the greatest group of calculations converges. The key to utilizing these harmonic measures when analyzing a price chart is to determine the area where the greatest group of patterns complete and important ratio calculations converge. • The bigger the number the more significant the harmonic area. The Fibonacci number that is calculated from the largest price leg is usually the most significant at a pattern’s completion point. This principle applies to both time and price. For example, a pattern that develops on a weekly chart will be more significant than a setup on a daily basis. Also, if there is a smaller pattern within a larger pattern, the larger pattern usually will be more significant. • The proper identification and interpretation of the price action in the PRZ at the completion of a pattern is the defining element for success. The preparation and discipline required to “execute in the zone” is no small task. This we need to practice and develop our own.
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A Bullish Cypher + trend line merging @ 2242 on daily chart, which will be a good point of entry for longs for positional trade. i will write a new thread on it soon.
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Good price action, Made entry
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Nicely kicked out from PRZ
Trade closed: stop reached
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Will wait for the next setup to active (cypher+trend line merge)
Nice article, we have same setup in elliottwave, but I believe target zone is bit different. We are predicting nested impulsive count which can go beyound 2600+ target. Indeed risk is limited..
We are on same boat :)
gulz
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@Hoag, Thank you, Harmonic pattern normally helps to identify the reversal zones to have less risky high profitable trades, We may look for higher targets once the T2 taken (target 3 is 1.272% of CD and finally target 4, which is the projected XA distance from the PRZ level at D.)
Pls note, there is another pattern is developing on daily charts which i have shared earlier ( have a look at it).
lets hope our boat will reach the final destination where we want to reach :)
razultull
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This is a good one, looking to go long on Monday, however that X point which isn't at the shadow low, is pulling up the PRZ defined by D, i'm getting a PRZ below 2420. Not sure if i'm splitting hairs here, however since its an hourly chart, just mentioning.
gulz
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@razultull, its a hourly chart, i hope the current hourly PRZ will give a bounce back for bulls- also use 1.13XA as stop loss for BATs ( its good from my experience)
Also have a look at daily chart, a bullish cypher D leg as well as trend line merging on same point ( screen shot copied as an update)- if market give us that point to make a long entry, it will be perfect long shot :)
razultull
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@gulz, That's good experiential info to know gulz, thank you. The cypher that's building looks really strong, hope it completes, will go long proper. Sick find.
kkcsarala
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With the level for D and PRZ is almost hthere I only would like to confirm from you whether the levels of XB,XD,BD and AC are with in the prescribed limits as given in the text books for the said patterna
and upto how much deviation can still be considered to be with in the pattern formation?
gulz
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@kkcsarala, is it a general question for any pattern or are you be specific about BAT pattern?
gulz
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@gulz, For BAT pattern, i generally follow as below

B leg : Price action must be between 0.382 to 0.616 ( 0.618 onwards it will be Gartley Pattern), 0.5 is Optimum value for the B leg.
C leg : 0.382-0.886 retracement of AB leg ( i have experienced valid BAT pattern where C leg with more than 0.886 retracement but it cannot spike above the A leg resistance.)
D leg : 0.886 retracement of XA leg & 1.618-2.618 of BC projection ( 1.618 is must)
kkcsarala
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@gulz, my question is pertaining to the current TCS BB harmonic pattern and your observations
gulz
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@kkcsarala, i hope above explanation will clarify it
We are on same boat :)