The Bat and Butterfly patterns extend the harmonic framework beyond the Gartley by producing different D point locations — the Bat deeper within the XA range at 88.6%, the Butterfly beyond the X point entirely. Each pattern has a distinct market context where it is most likely to appear and a distinct risk profile at the point of entry. Understanding the differences between these three patterns — Gartley, Bat, and Butterfly — allows you to trade each appropriately rather than applying the same setup to fundamentally different market structures.
The Bat Pattern
The Bat pattern was identified by Scott Carney and introduced in his work in the early 2000s. It shares the same five-point structure as the Gartley (X, A, B, C, D) but has different Fibonacci ratio requirements — most significantly, the D point must retrace 88.6% of the XA leg rather than the Gartley's 78.6%.
BAT GARTLEY AB retracement: 38.2-50% 61.8% BC retracement: 38.2-88.6% 38.2-88.6% CD extension: 161.8-261.8% 127.2-161.8% D point: 88.6% of XA 78.6% of XA
Bat vs Gartley — Key Differences
The most significant difference between Bat and Gartley is the AB leg retracement. In the Gartley, AB retraces 61.8% of XA. In the Bat, AB retraces only 38.2% to 50% of XA — a shallower retracement. This shallower AB retracement is what allows the pattern to still reach 88.6% of XA at the D point without violating the Elliott Wave rules that govern the underlying structure.
The deeper D point of the Bat (88.6% vs 78.6%) means the entry is taken closer to the origin of the XA leg. This provides a tighter stop loss — the stop is placed beyond X, meaning a relatively small violation of the 88.6% level completely invalidates the pattern. The tighter stop with a target back to the A point or X point provides excellent risk-reward ratios when the pattern works.
X: 1.1100 A: 1.0900 (XA = 200 pips down) B: 1.0997 (AB = 48.5% retrace of XA) C: 1.0940 (BC = 59% retrace of AB) D: 1.0923 (88.6% retrace of XA = 1.1100 − (0.886 × 0.0200) = 1.0923) Stop: Below X (1.1100 on downside basis). Wait for bullish signal at D. Target 1: C point (1.0940) — 17 pips. Target 2: A point (1.0900) — No wait. Note: 88.6% of XA puts D very close to X. Stop is tight. Risk-reward is excellent if the reversal holds.
The Butterfly Pattern
The Butterfly pattern introduces a fundamentally different concept: the D point extends beyond the X point rather than retracing within the XA range. In the Gartley, D retraces 78.6% of XA — it remains within the XA range. In the Bat, D retraces 88.6% of XA — close to X but still within range. In the Butterfly, D extends to 127.2% or 161.8% of the XA leg — beyond X itself.
X: 1.1100 A: 1.0900 (XA = 200 pips down) B: 1.1024 (AB = 78.6% retrace of XA) C: 1.0966 (BC = 38.2% retrace of AB) D: 1.0646 (CD = 161.8% extension of BC AND 127.2% extension of XA = 1.1100 − (1.272 × 0.0200) = 1.0846 at minimum or 1.0900 − (1.618 × 0.0334) dependent on measurement.)
The Extension Difference
Because the Butterfly D point extends beyond X, it often appears to form at a new low or new high — suggesting the trend is continuing rather than reversing. This is precisely what makes the Butterfly difficult to trade and rewarding when successful: it enters against apparent trend continuation at a point where most other traders are positioned in the trend direction.
The AB leg of the Butterfly retraces 78.6% of XA — deeper than both the Gartley (61.8%) and Bat (38.2-50%). This deeper AB retracement is the first distinguishing characteristic that allows you to identify a potential Butterfly structure early in its formation.
Choosing Between Patterns
In practice, you do not choose which pattern to trade arbitrarily — the market shows you which pattern is forming based on the Fibonacci ratios as each leg completes. The AB leg ratio tells you whether you may have a Gartley (61.8%), Bat (38.2-50%), or Butterfly (78.6%) forming. The BC ratio narrows it further. By the time the CD leg is developing, you should be able to calculate the potential D point zone for the pattern the ratios are pointing to.
Harmonic pattern software can automate the identification process — drawing patterns and highlighting potential PRZ zones automatically. However, understanding the underlying ratios manually is essential before relying on software. Software can generate many false patterns — only traders who understand the ratios can evaluate whether an identified pattern is genuinely valid.