There is a bullish Gartley for EURGBP. Price recently went as low as 0.87478 (85.2 Fibonacci retracement of leg XA) with the news release, Retail Sales m/m (GBP). As I expect price to go up, I am placing an aggressive buy limit at 0.87516 which is the 78.6 Fibonacci retracement of leg XA. However, it is ideal to wait for confirmation first. Take profit targets are set at the 38.2 and 61.8 Fibonacci retracement levels of leg AD and point A. The stop loss has the same number of pips as TP1 by default. I will manually cancel this pending order if price goes to TP1 before getting triggered.
Hello there, interesting view although I would say just looking from the chart your B-C leg doesn't retrace far enough. My Gartleys generally a retracement of X-A of atleast 0.618 but must not touch 786, followed by a B-C retracement of atleast 618 but must not surpass the high of X-A followed by either a confluence of a 1.27 extension of A-B and a .886 retracement of X-A. Or just a 1.27 extension of A-B.
We all trade different rules though so I would be interested to hear what your plan says rules wise
all the best
joelduque
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@surefire-ltd, Yes, thank you for your input. I agree that this Gartley is not ideal. However, I think the rules of my Gartley are still followed:
1. B MUST retrace and close beyond 61.8 of XA and must not touch 78.6, OR 127.2 extension of AB (modified);
2. C MUST retrace at least 38.2 of AB and not touch A; IDEALLY also retrace between 61.8 and 78.6 of AB; and
3. D completion at 78.6 retracement of XA, IDEALLY 127.2 to 161.8 extension of BC ratio confluence.
I will also consult this with my coach as I am not sure if I applied the rules correctly. Again, thank you very much for pointing this out. Good luck!
surefire-ltd
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@joelduque, have you back tested your rules for that gartley variation. If you are new to the game its massively important to back test your strategy aswell as forward test in live markets. Every day is a learning curve
joelduque
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@surefire-ltd, Actually this is a part of backtesting and forward testing assignment with my mentor. Yes, that is true. Thank you for the reminder. This is noted well.
surefire-ltd
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@joelduque, ive had a quick glance over your ideas and there are a few on there where I would say the rules do not quite match. If you ever want any advice on pattern rules feel free to drop me a pm
We all trade different rules though so I would be interested to hear what your plan says rules wise
all the best