The Harmonic Pattern Series: II The Gartley Pattern

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Hi,
I am back with one more harmonic Pattern -- The Gartley
For a brief overview about harmonic pattern fundamentals, first go to the link in the update section.


GARTLEY PATTERN

X-A: A strong leg which ends at an important Support/Resistance level.
A-B: The most important leg to recognize this pattern. Should retrace exactly 61.8% of X-A.
B-C: Should retrace between 38.2 to 88.6 % of A-B. This leg should not extend beyond point A.
C-D: Second most important leg to confirm the Gartley pattern. C-D should not retrace more than 78.6 % of X-A.
A-B=C-D: Another important pattern inside the Gartley is that A-B leg should be equal to C-D. The presence of this pattern provide
complementary confirmation for potential reversal at point D.
B-C Projection: Point D should be between 1.13 to 1.618 B-C projection.

Pattern completes at point D so it is the most important point in the pattern. If all the above conditions are valid, a reversal is expected from this point.

# In Bullish harmonic patterns an upward reversal is expected at point D, whereas in Bearish patterns a downward reversal is expected at point
D.
# Normally a buy/sell order is placed at point D, expecting some sort of reversal, and targets are placed at 38.2% and 61.8% of A-X.
# A complete reversal should not be expected at point D in any harmonic pattern . Only the future price action can provide confirmations about trend reversal.

For those who do not about the harmonic pattern tool, It is the XABCD tool (just below the text tool) provided in the side tool bar on the chart page.

Trade safe, be healthy
Hit like/comment if this information is useful.

Regards
Bravetotrade

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