The Gartley pattern, one of the most traded harmonic patterns, is a retracement and continuation pattern that occurs when a trend temporarily reverses direct. There are various patterns which fall into the “harmonic” group, but today we will highlight one of the oldest recognized harmonic patterns – the Gartley pattern. “The Gartley is a very powerful, multi-dimensional pattern. It is called a Gartley because it is found in H.M. Gartley’s book, Profits in the Stock Market, .

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And as with the other harmonic trading patterns, it must meet its own specific Fibonacci levels in order to qualify as a valid formation.

Trading the Gartley Pattern: Ratios, Rules and Best Practices

The Bat pattern has the following qualities:. Depending on the type of Fibonacci level the pattern is commonly named differently.

The BC move should then reverse the AB move. We have our last target on the chart.

The CD leg gxrtley therefore often equal to the AB leg. And so, the Gartley pattern is also sometimes referred to as Gartley or the pattern by some harmonic traders. Never give back what you earned in the first four days.

The image illustrates another Gartley pattern, where we apply our trading strategy. You guys helped me alot. An example of drivers: The CD leg is, therefore, longer than the AB leg.

The XA move could be any price activity on the chart. N Elliott and W. This way you will protect yourself from any rapid or unexpected price moves.


Trading The Gartley Pattern

This pattern has a high reward-to-risk ratio because you can put a very tight stop loss. Here is an introduction: The Bullish Gartley is the one we took as an example in the images above. The sketch above shows you the exact location of a properly positioned stop loss order of a bullish Gartley pattern. The key to avoiding all the confusion is to take things one step at a time.

Therefore, 2222 target is accomplished even before we manage to enter the market. Gartlye Daily garley October 12, at 4: The generally expected price target of the bearish Gartley is the For the Gartley patterns mentioned here, a direct level entry means a pending entry order at a specific Fibonacci level.

This way you will be able to gauge the general size of the pattern and have a clear idea about the parameters.

Gartley Pattern and Trading the Patterns | Trading Strategy Guides

However, in this case your trade will 222 the short side. Then, there is the Butterfly pattern. Your email address will not be published. The green arrow on the image represents the expected price move of the bullish Gartley pattern. What makes the Gartley such a nice setup when it forms is the reversal points are a Fibonacci retracement and Fibonacci extension level.

C can stop at any Fib of AB, which is One more question pls: Most of the classical charts patterns use Fibonacci levels as well. Gartley is a special chart pattern within the harmonic pattern universe. The Gartley pattern is a reversal pattern with clear rules and provides an excellent reward to risk. Fourteen periods after price reaches the A target, we see that the final target is reached. Below you will find an image showing you the proper location of a Bullish Gartley stop loss order: Then if BC is When this happens, we gartlej to go long putting a stop loss below point D as shown on the image.


Do you like it? We will now go through each component of the Gartley structure: Or am I reading the price action incorrectly?

M Gartley, who lived during the same era as R. You may want to correct that. Since this is a bullish Gartley setup, the expected price move is to the upside. The price targets of the Gartley pattern are: These patterns are gartleu to help traders find good entry points to jump in on the overall trend. The focus of this article is on Gartley Patterns and trading the patterns.

Trading the Gartley Pattern: Ratios, Rules and Best Practices – Forex Training Group

And the break out would occur when price bounces off the Fib and breaks a trend line in the anticipated direction. It starts with a bullish XA move. Wow great read thanks chris Reply.