26 Nov 10 - Bullish Bat Pattern on AUD/JPY - M15 Chart

As the week is coming to an end and that market will be closing in a few hours, I was more or less wrapped up for the week when a low risk, high probability trade came into play. With the former in mind, this trade was managed aggressively so as to ensure that I lock in some profits before the close of the market.


I was planning to take this trade on a H1 entry but then I decided to sneak an earlier entry with a M15 chart. I would seldom consider M15 entries but since it was already the end of the week, I decided to go in for a fast trade. Do note however that M15 chart signals will usually lack significance as compared to the H1 signals which are the ones which I will usually prefer.


I would say that this was a very nice setup where a relatively small risk was involved in this trade.


Signals which validated the Bullish Bat Pattern were:

1. A confluence of 3 Harmonic Ratios - 0.886 XA @ 80.644, 2.24 BC @ 80.667 and 1.618 AB=CD @ 80.814.
2. A Piercing Pattern which indicated a reversal at the lower band of the PRZ which prompted some close monitoring for this pair.

The setup to go long on this pair was when the price closed above the PRZ.

Trade Details

• Date: 26 Nov 10
• Time: GMT 12:45
• Entry Price: 80.922
• S/L: 80.40 (52.2 pips)
• T/P: 81.610 (68.8 pips) - 0.618 of AD swing.

Trade Progress


The 1st batch was closed on 26 Nov 10, GMT 14:54 at 81.236, netting a profit of 31.7 pips.


The 2nd batch was closed when the Protective Stop was triggered on 26 Nov 10, GMT 15:59 at 80.953, netting a small profit of 3.1 pips.


Trade Reflection


It was considered a nice trade done on this pair. However, it should be noted in this case that since the trade was managed aggressively, there will be a tendency for the Protective Stop to be triggered since very little room was given for the trade to move. Then again, if this was the middle of the week, I would have given this trade more room to work itself up as weekend gaps may happen and it might just take my trade out in a loss which is something which I am not willing to take. This ever happened in one of the trades on GBP/JPY when I was already in a profit and the trade was already put into break even. However, a weekend gap gapped down and resulted in a loss.