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The Gartley pattern, one of the most traded harmonic patterns, is a retracement and continuation pattern that occurs when a trend temporarily reverses direct. There are various patterns which fall into the “harmonic” group, but today we will highlight one of the oldest recognized harmonic patterns – the Gartley pattern. “The Gartley is a very powerful, multi-dimensional pattern. It is called a Gartley because it is found in H.M. Gartley’s book, Profits in the Stock Market, .

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The breakdown through this trend line is very sharp and it is created by a big bearish candle. A flag will typically find support levels at the various Fibonacci points such as The focus of this article is on Gartley Patterns and bartley the patterns.

When the Gartley pattern is bearish, then you use the same two rules to open a trade. I think the best advice comes from reading Scott M.

We discussed entry techniques in a previous article: This target takes a little bit longer to be complete. In the book and specifically on pageH. You wrote a very good article Chris. Great Great break gartlry of patterns.

C can stop at any Fib of AB, which is For the Gartley patterns mentioned here, a direct level entry means a pending entry order at a specific Fibonacci level.

Trading The Gartley Pattern –

We have our last target on the chart. The image below is a bullish Gartley pattern example: Soon enough, traders realized that these patterns could also be applied to other markets. We will open trades after identifying the pattern rules and after the price action bounces from the Since then, various books, trading software, and other patterns discussed below have been made based on the Gartleys.


You are always free fartley use additional price action rules or a trailing stop to attain further out exit points on your trade. The pattern starts with point X and it creates four swings until point D is completed.

For some odd reason, the discoverers of these variations decided to name them after animals Maybe they were part of PETA?

I would say best article for peoplle trying to know pattern trading. Most of the classical charts patterns use Fibonacci levels as well. Notice the adjoining bottoms of these peaks create a small bullish trend line on the chart yellowwhich we can use to settle a final exit point on the chart.

Trading The Gartley Pattern

Our Gartley trading method objectively pinpoints the proper location of the entry point, stop loss, and exit point. However, in this case your trade will to the short side. The AB move should be approximately The BC move should then reverse the AB move.

A confirmation would be to wait for a candlestick reversal pattern at the Fib. Below you will see a sketch of the bearish 2222 setup.

The CD leg is therefore often equal to the AB leg. Now there is one more target left, which is located at the BC is the This way you will be able to gauge the general size of the pattern and have a clear idea about the parameters.


Then, there is the Butterfly pattern. N Elliott and W. If you open a bullish Gartley trade, your stop loss order should be gartlet right below the D point of the pattern. Hi Adam, that is great! This way you will protect yourself from any rapid or unexpected price moves. Submit a Comment Cancel reply Your email address will not be published. According to Gartley, he was finally able to solve two of the biggest problems of traders: When the CD move is finished and the price creates a bearish bounce from the The green arrow on the image represents the expected price move of the bullish Gartley pattern.

Therefore, the pattern shares the same target rules with the bullish Gartley: Created by Bryce Gilmore, the perfect Butterfly pattern is defined by the. Your email address will not be published. Zaid Sarwar on July 16, at 9: Therefore, you could close the deal gagtley and collect your realized profit.