Gartly Pattern

[Profitsniper007]

I am quite surprised no one has already posted about this (when I searched the title name there were no results.)

This is a 222 Gartly Pattern which was first found (or at least made public) by Gartly and was on page 222 of his book - hence the uncreative name.

It is a strong reversal pattern that is successful about 60-70% of the time, some sources say as much as 90% but in my personal experience trading them, I have found 70% to be a fair representation.

The patterns consists of 4 moves.

First is a impulse leg breaking previous high/lows.

Second is a 61% retrace.

Third is a 61% retrace of that move.

Forth is a 76% retrace of impulse leg.

This is where the buy area is (in a bullish gartly).

Stop loss goes under the impulse leg low.

Targets can be taken in a few ways depending on how long you want to stay in the market. The "safe" way is to target the 38% retrace of the most recent move down and then the 61% of that same move.

You can stay in and target the high of the impulse leg or even higher.

I have attached a drawn (badly) version and I have also attached a real chart example that I am currently trading.

(In the real chart one I have moved my stops since there was the NFP and I felt that if it got high enough to trigger my stops where they are, it would get high enough to take out my original stop loss.)

 

[Profitsniper007]

Oh should have said, the drawn pic is a bullish gartly and the live example is a bearish one.
Sorry, could not be bothered finding a bullish one and I am not currently trading any bullsih gartlys.

 

[Pat494]

Selling a book just on that - no thanks !!

 

[malaguti]

I am quite surprised no one has already posted about this (when I searched the title name there were no results.)

possibly because you can't spell?
Gartley, mate, Gartley

 

[Profitsniper007]

Selling a book just on that - no thanks !!

No, I don't write books, very time consuming.
The Gartley Trading Method retails about $60 I think and is a pretty decent read though.

possibly because you can't spell?
Gartley, mate, Gartley

That would be why lol.

Thank you for being helpful as always

 

[Lightning McQueen]

possibly because you can't spell?
Gartley, mate, Gartley

can't spell you say?!!

 

[Profitsniper007]

can't spell you say?!!

Your signature cracks me up lol

 

[Lightning McQueen]

Your signature cracks me up lol

not started swearing at me yet then

how's it going by the way, you're well I trust

 

[Profitsniper007]

Anyway, again a thread that looks like the comments will not pertain to the anything to do with the purpose of the thread, I see a trend developing, but am not jumping on this one

I will be back if anyone wants to discuss the pattern

Otherwise adios.

 

[Profitsniper007]

not started swearing at me yet then

how's it going by the way, you're well I trust

Very well indeed, thanks for asking

Hope your good self is as well.

 

[Lightning McQueen]

Very well indeed, thanks for asking

Hope your good self is as well.

I'm good, good luck with your threads, maybe you can ask the mods to delete the intrusion

 

[Profitsniper007]

I'm good, good luck with your threads, maybe you can ask the mods to delete the intrusion

Nah, it gives someone something to do.
I am just not going to partake in it.

 

[Maza]

I am quite surprised no one has already posted about this (when I searched the title name there were no results.)

This is a 222 Gartly Pattern which was first found (or at least made public) by Gartly and was on page 222 of his book - hence the uncreative name.

It is a strong reversal pattern that is successful about 60-70% of the time, some sources say as much as 90% but in my personal experience trading them, I have found 70% to be a fair representation.

The patterns consists of 4 moves.

First is a impulse leg breaking previous high/lows.

Second is a 61% retrace.

Third is a 61% retrace of that move.

Forth is a 76% retrace of impulse leg.

This is where the buy area is (in a bullish gartly).

Stop loss goes under the impulse leg low.

Targets can be taken in a few ways depending on how long you want to stay in the market. The "safe" way is to target the 38% retrace of the most recent move down and then the 61% of that same move.

You can stay in and target the high of the impulse leg or even higher.

I have attached a drawn (badly) version and I have also attached a real chart example that I am currently trading.

(In the real chart one I have moved my stops since there was the NFP and I felt that if it got high enough to trigger my stops where they are, it would get high enough to take out my original stop loss.)

Hey Profit Sniper,

The description of the 222 Gartley is great but there are a few things that you are missing. First of all most patterns, except for the Shark and the 5-0, have 4 different legs before the completion point at D, the XA, AB, BC and CD legs. The hardest thing for any beginner in pattern trading is choosing the XA leg correctly generally if your starting out pattern trading it's much safer to choose the XA leg as an impulse leg (where price action breaks a level of support or resistance). After choosing the XA leg you draw a Fibonacci retracement and you look for price action to retrace between the 61.8% retracement and the 78.6% retracement before turning around again, this giving you the AB leg of the pattern. If the whick of the top candle touches the 78.6% retracement then the Gartley is invalid and you should look for a Butterfly pattern instead. once the AB leg is made and price action is retracing again you should look again for a 61.8% retracement of AB leg of the pattern. Once price action turns around at the 61.8% retracement the BC leg of the pattern is formed. For the completion of the pattern Gartley specified that the 78.6% retracement of the XA leg should be where price action turns around at, "Now why is this level so important?" you ask yourself, because, and this is conditional that the pattern only reached the 61.8% retracement and didn't push any higher, if you take a Fibonacci extension from the AB move of the pattern you have a 127.2% lining up roughly with the 78.6% XA retracement, also if you draw a line from the AB move and copy and paste it to the CD move you have a AB=CD completion right at that level as well, also (and this is the last thing) if you take a Fibonacci inversion of the BC leg you will have a 141.4% level ling up again with the 78.6% retracement of the XA leg.

This is the 222 Gartley and how it works, now the problem with this is that it doesn't happen very often at all, most of the time you get the 61.8% retracement of the XA leg for the B completion but price action pushes way further than the 61.8% retracement of the AB leg for the C completion and this throws out the AB=CD completion and the 141.4% extension and this throws out the completion point of the Gartley, I am actually working on finding the Sweet spot for the completion of the more frequently occurring Gartley because in most situations price action comes right before my entry point and then turns around to take profits. I could go on about this subject for a while longer but its too much to type really this is more of a conversational peace than a written peace.

But I hope this helped, and as always any thoughts feelings or concerns pelease reply to my post or PM me (I might not answer right away but when I get to it I will) .

Maza.