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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You are always free to use additional price action rules or a trailing stop to attain further out exit points on your trade. The key to avoiding all the confusion is to take things one step at a time.
This pattern has a high reward-to-risk ratio because you can put a very tight stop loss. Hi Gartleey, that is great!
Trading The Gartley Pattern
In any case, the pattern contains a bullish or bearish ABCD patternbut is preceded by a point X that is beyond point D. C can stop at any Fib of AB, which is There are no specific requirements in relation to the XA price move of the Gartley chart formation.
An example of This is a sketch of the Gartley chart figure. CD reaches the AB is then bearish. Some of these patterns are reversal signals, others are continuation patterns. The sketch above shows you the exact location of a properly positioned stop loss order of a bullish Gartley pattern. We will attempt to stay in our trades until price reaches the four targets we discussed.
As mentioned earlier, the targets that I look for are as follows: The green arrow on the image represents the expected price move of the bullish Gartley pattern. But in general, if the price action shows no signs of interrupting the new trend, just stay in it for as long as you can.
The last but not least, the target D. A flag will typically find support levels at the various Fibonacci points such as The next target is located on the level of point C and the price action reaches it 14 periods after the short Gartley signal. Click Here to Join. Trading letter D could be seen as with the trend trade very close to support and resistance in any case and good reward to risk as well target can be the top in up trend example, bottom in down trend example OR any Fib from C to D.
The image below is a bullish Gartley pattern example: Has this helped your trade management?
Below you will find an image showing you the proper location of a Bullish Gartley stop loss order: When you open your Gartley trade and you place your stop loss order, you expect the price to move in your favor, right? Here is part 1 and 2 part 2 has the pattern. For some odd reason, the discoverers of these variations decided to name them after animals Maybe they were part of PETA?
AB is then bullish and BC is bearish. Since then, various books, trading software, and other patterns discussed below have been made based on the Gartleys.
Gartley Pattern and Trading the Patterns | Trading Strategy Guides
This is my attempt to make the patterns easier to interpret drivers and excluded. In the following material, will dive into some rules and best practices around trading the Gartley pattern. The target of point D is, in fact, using the same XA swing high swing low and is aiming for the The rules for trading the Gartley chart figure are as follows: We will open trades after identifying the pattern rules and after the price action bounces from the In the book and specifically on pageH.
One of them is wrong. Great Great break down of patterns.
Here is an introduction: The image illustrates another Gartley pattern, where we apply our trading strategy.