Bullish Gartley Pattern:
It starts with a bullish XA move. AB is then bearish. BC is bullish, and CD is bearish again.
XA: This can be any price activity on the chart. There is no specific price movement in Gartley chart formation.
AB: The AB move should be approximately 61.8 % Fibonacci of XA and should not cross the starting point X. If it crosses X then the pattern becomes invalid.
BC: The BC move should finish between 38.2% and 88.6% Fibonacci of XA and should no cross point A. If it crosses point A then the pattern becomes invalid.
CD: The CD move will be the final and important part of the pattern and to place a long trade when CD is 78.6% of XA. Ideally point D should represent 127% to 161.8% Fibonacci of BC. Look for entry at point D once you see the trend reversal. Note point D cannot be cross the starting point X. If it crosses then the pattern becomes invalid.
Profit Targets:
The full target price of the pattern is the 161.8% Fibonacci extension of the AD. However, there can be 3 intermediate targets before the final target
which are:
Target 1: point B swing
Target 2: Point C swing
Target 3: Point A swing
Target 4: Point E 161.8% Fibonacci of AD
Note that you can only draw (AD) Fibonacci retracement once the pattern has completed at point D and the price has reversed.
Stop Loss : should be just below X with a support channel.
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It starts with a bullish XA move. AB is then bearish. BC is bullish, and CD is bearish again.
XA: This can be any price activity on the chart. There is no specific price movement in Gartley chart formation.
AB: The AB move should be approximately 61.8 % Fibonacci of XA and should not cross the starting point X. If it crosses X then the pattern becomes invalid.
BC: The BC move should finish between 38.2% and 88.6% Fibonacci of XA and should no cross point A. If it crosses point A then the pattern becomes invalid.
CD: The CD move will be the final and important part of the pattern and to place a long trade when CD is 78.6% of XA. Ideally point D should represent 127% to 161.8% Fibonacci of BC. Look for entry at point D once you see the trend reversal. Note point D cannot be cross the starting point X. If it crosses then the pattern becomes invalid.
Profit Targets:
The full target price of the pattern is the 161.8% Fibonacci extension of the AD. However, there can be 3 intermediate targets before the final target
which are:
Target 1: point B swing
Target 2: Point C swing
Target 3: Point A swing
Target 4: Point E 161.8% Fibonacci of AD
Note that you can only draw (AD) Fibonacci retracement once the pattern has completed at point D and the price has reversed.
Stop Loss : should be just below X with a support channel.
If you like my TA & ideas!! Want to keep yourself updated with current market action, then please follow my profile for more analysis.