The Bat Pattern

The specific Fibonacci alignments between each swing within the Bat pattern that
give the highest probability of a reversal to occur are as follows:

1. Point D is an 88.6% retracement of the XA leg.

2. Point B is a 38.2% or a 50% retracement of the XA leg.

3. The retracement point C can be anywhere between 38.2% - 88.6% of the AB

leg.

4. The CD leg is usually extended relative to the AB leg (with CD = 1.272×AB

being the most common) although the equivalent AB = CD is also valid.
5. BC projection is 161.8% or more.
The Crab Pattern

Here are the strict Fibonacci ratios between the legs in the Crab pattern that tend to
give the best trading setups and yield the best results.

1. Point D is a 161.8% projection of the XA leg.

2. Point B is a maximum 61.8% retracement of the XA leg or less.

3. The retracement point C can be anywhere between 38.2% - 88.6% of the AB

leg.

4. The CD leg is 127.2% of AB (1.272×AB) at the minimum or 161.8% of AB

(1.618×AB).
5. BC projection is a minimum 161.8%.
The Gartley Pattern
First, let’s define the most basic rules of the pattern and then we’ll discuss the
Fibonacci relationships within it:

1. The pattern starts with the XA leg which is the basis for everything that
follows.
2. The AB leg can not surpass point X.

3. The BC leg can not surpass point A.

4. The CD leg can not surpass point X.

5. The ending point D of the CD leg must be at least equal to or surpass point B
in order to complete the Gartley pattern.

The above 5 conditions must be fulfilled for the pattern to be a Gartley in the first
place. However, taking these conditions alone, even a double top or just about any
simple retracement can qualify as a Gartley pattern.

The downside to this very basic approach is that such patterns don’t offer the best
trade setups. Rather, it’s the specific Fibonacci alignments between each swing
within the pattern that give the highest probability of a reversal and thus the best
trade setups using the Gartley pattern.
Following are the Fibonacci ratios that define the Gartley pattern for the highest
probability setups:

1. Point D is a 78.6% retracement of the XA leg.

2. Point B is a 61.8% retracement of the XA leg.

3. The retracement point C can be anywhere between 38.2% - 88.6% of the AB

leg.

4. The CD leg is equivalent to the AB leg (AB = CD).

5. BC projection can be 161.8% or less.

The Butterfly Pattern
Again, first we’ll define the most basic rules for the pattern before discussing the
best alignment Fibonacci relationships within it:

1. The pattern starts with the XA leg which is the basis for everything that
follows.
2. The AB leg can not surpass point X.

3. The BC leg can not surpass point A.

4. Unlike the Gartley, the CD leg must surpass point X.

5. The ending point D of the CD leg must be equal to or surpass point B in

order to complete the Butterfly pattern.
After outlining the most basic structure of the butterfly pattern, let’s see the
specific Fibonacci alignments that give the best trading setups with this pattern.

1. Point D is a 127.2% projection of the XA leg.

2. Point B is a 78.2% retracement of the XA leg.

3. The retracement point C can be anywhere between 38.2% - 88.6% of the AB

leg.

4. The CD leg can be equivalent to the AB leg, or 127.2% of AB.

5. BC projection is a minimum 161.8%.