What is a Gartley harmonic pattern?

The Gartley pattern is a harmonic chart pattern, based on Fibonacci numbers and ratios, that helps traders identify reaction highs and lows. In his book Profits in the Stock Market, H.M. Gartley laid down the foundation for harmonic chart patterns in 1935.

Is Gartley bullish or bearish?

Most Gartley patterns are for overall bullish trends (as the point from X to A is moving upwards) that is currently experiencing a bearish retracement. Since the pattern is a member of the Harmonic family, every swing has to conform to particular Fibonacci levels.

What is the best harmonic pattern?

Top 7 harmonic patterns

• The ABCD pattern.
• The BAT pattern.
• The Gartley pattern.
• The butterfly pattern.
• The crab pattern.
• The deep crab pattern.
• The shark pattern.

What is bullish Gartley pattern?

First introduced in 1935 by trader H.M. Gartley in his book, “Profits in the Stock Market” Contains an bullish ABCD pattern preceded by a significant high or low (point X) A visual, geometric price/time pattern comprised of 4 consecutive price swings, or trends—looks somewhat like an “M” on price chart.

How do you trade on Gartley?

The “perfect” Gartley pattern has the following characteristics:

1. Move AB should be the . 618 retracement of move XA.
2. Move BC should be either . 382 or . 886 retracement of move AB.
3. If the retracement of move BC is . 382 of move AB, then CD should be 1.272 of move BC.
4. Move CD should be . 786 retracement of move XA.

How can I tell what pattern my Gartley is?

The Gartley pattern will resemble either an ‘M’ or a ‘W’ shape on a price chart; it will be ‘M’ if the price movement is bullish, and it will be ‘W’ if the price movement is bearish. This pattern is the most common of the harmonic patterns, the others of which include ‘the butterfly’, ‘the bat’ and ‘the crab’.

How do I know what Gartley pattern I have?

How do you trade bearish Gartley pattern?

Bearish Gartley Pattern Rules (sell at point D)

1. Swing up from A-to-D will typically be 61.8\% or 78.6\% retracement of XA.
2. Time from point XA and AD ideally in ratio and proportion.
3. Limited instances where ABCD move completes at 100\% of XA (double top)

How are Gartley patterns calculated?

Here is how to detect a Gartley pattern:

1. The first leg (XA) must retrace back 61.8\%.
2. The second leg (AB) mustalso retrace back 61.8\%.
3. The third leg (BC) must retrace back 161.8\% which is a simple AB = CD pattern.
4. The whole retracement from the beginning (XA) to the top must be 78.6\%.