Harmonic Gartley Pattern

Harmonic Gartley Pattern

The Gartley pattern is one of the most traded harmonic patterns is a retracement and continuation pattern that occurs when a trend temporarily reverses direction before continuing on its original course.

It gives you a low-risk opportunity to enter the market where the pattern completes and the trend resumes. As like other Harmonic patterns, there is a bullish and a bearish version of Gartley.

The Gartley pattern includes the AB=CD pattern in its structure, meaning it is very important that you have studied this pattern first.

The pattern is often referred to as “Gartley 222” because H. M. Gartley first described it on page 222 of his book “Profits in The Stock Market”.

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Harmonic Gartley pattern trading rules :

The criteria for identifying the Gartley pattern are as follows:

   ⦁ The XA wave is a normal price swing in the upward or downward direction.

   ⦁ The AB wave is precise 0.618% retracement of the XA wave.

   ⦁ The BC wave can be either a 0.382% to 0.886% retracement of the AB wave.

   ⦁ The CD wave should be a 1.131% to 1.618% extension of the BC wave.

   ⦁ Overall, the CD wave should be 0.786% retracement of the XA move.

   ⦁ Equivalent AB=CD structure is most common in length as well as time.