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Chapter 5. The Bat Pattern > NASDAQ 100 Tracking Stock (QQQQ): 5-Minute - Pg. Vol1-95

Chapter 5 The Bat Pattern 95 NASDAQ 100 Tracking Stock (QQQQ): 5-Minute The Bearish Bat in this example possesses a perfect structure with a precise alignment of the required Fibonacci ratios to validate the pattern. Starting with a perfect 50% B point retracement, the price action formed an Alternate 1.27 AB=CD pattern that completed in the same exact area as the 2.0 BC projection. In combination with the 0.886 XA retracement, the PRZ possessed three numbers in a 10-cent range that defined resistance just above $30 a share. The chart in Figure 5.24 clearly demonstrates the effectiveness of the perfect pattern structure to define critical turning points within any trend. In this case, the perfect Bearish Bat defined an optimal execution area to short the Qs.