Here we have a bearish bat pattern on EUR/USD visible on the 4 hour chart.
Conditions for a valid are:
- AB leg can retrace between 0.382 – 0.5 of XA leg
- BC leg can retrace between 0.382 – 0.886 of AB leg
- CD leg can retrace up to 0.886 of XA leg
- CD leg can also be an extension of between 1.618 – 2.618 of AB leg
Take profit is set at 0.382 and 0.618 retracements of AD. At target 1, half position will be closed and the stop loss moved to breakeven.