A bullish impulse leg is a strong move in price action to the upside. The impulse leg can be a mixture of bullish and bearish candles, but must have a bullish overall direction. The start of the impulse leg should be marked as X and the top of the impulse leg should be marked as A.
STAGE 2: B LEG RETRACEMENT
Now that you have identified your X to A impulse leg you are now looking for the B leg, which is a retracement of the X to A impulse leg.
Take your Fibonacci retracement tool and draw from your X leg to your A leg. The crucial Fibonacci levels you are looking for are the 61.80% and 78.60% Price action must at least touch the 61.80% retracement but cannot touch the 78.60% retracement.
As you can see by the illustration, the candle does not need to close below the 61.80% retracement but must at least spike through. The bullish Gartley pattern will be invalid if price action touches the 78.60% retracement of the X to A move.
STAGE 3: C LEG RETRACEMENT
Once you have identified a valid X to A impulse leg and a B leg retracement, you are now looking for a valid C leg retracement.
Take your Fibonacci retracement tool and draw from your A leg to your B leg. The crucial Fibonacci retracement level you are looking for is the 61.80% Price action must at least touch the 61.80% but cannot spike above the A leg resistance. The candle does not need to close above the 61.80% but must at least spike through.
The bullish Gartley pattern will be invalid if price action spiked above the A leg resistance.
STAGE 4: D LEG COMPLETION
Now that you have a valid X, A, B and C move you are looking for the final leg in price action at which point you will buy the chosen currency pair.
Take your Fibonacci retracement tool and draw from your B leg to your A leg. You are looking for a 1.272% which will now give you a valid D leg completion of the bullish Gartley pattern.
STAGE 5: PLACING YOUR TARGETS
When looking to take targets on the bullish Gartley Pattern the first step is to use your Fibonacci retracement tool.
With your Fibonacci retracement tool draw from the A to D leg, you are looking for target 1 at the 38.20% and target 2 at the 61.80%. To protect the profits you have accumulated at target 1 it is advised you move your stop loss to breakeven once the 38.20% target 1 has been attained, thus giving you a risk free trade to target 2.
KEY NOTES & RULES:
When trading the bullish Gartley pattern, the pattern is meant to be traded at 1.272% D leg completion only. If you believe the pattern is unfolding but price is only at point B, be patient and wait until price reaches the D leg completion. The power of the pattern comes from converging Fibonacci levels of all points from X to D.
Point B must at least touch the 61.80% retracement but cannot touch the 78.60% from the X to A move. Point C must touch the 61.80% but cannot spike above the A leg resistance. Point D is complete when price action touches the 1.272% retracement of the B to A move. Stop loss must be placed below the X leg structure support. Stop loss must also be a minimum of a 1:1 risk reward to the 38.20% target 1. Target 1 at the 38.20% retracement of the A to D move. Target 2 at the 61.80% retracement of the A to D move.
CURRENCY PAIR: This pattern like any other is more profitable with certain currency pairs, you should do your own back testing on this prior to trading the pattern.
CANDLE COLOUR: Blue = Bullish Candle White = Bearish Candle
DISCLAIMER: Please note I am only providing my own trading information and techniques for your benefit and insight, you should do your own due diligence and not take this information as a trade signal.
Bình luận
⋅
5 EASY STEPS TO TRADE THE GARTLEY PATTERN - Target 1
Bình luận
⋅
5 EASY STEPS TO TRADE THE GARTLEY PATTERN - Target 2
Bình luận
⋅
5 EASY STEPS TO TRADE THE GARTLEY PATTERN - Extended Target
Bình luận
⋅
5 EASY STEPS TO TRADE THE GARTLEY PATTERN - Risk Reward 1:1 Minimum
Bình luận
⋅
5 EASY STEPS TO TRADE THE GARTLEY PATTERN - AB-CD
Bình luận
⋅
Bình luận
⋅
Bình luận
⋅
01.01.2016 - To date results
Bình luận
⋅
If you would like me to release my Bat Setup rules comment below.
Well done my friend! And thank you very much for putting the time and effort to help others!
UnknownUnicorn180388
⋅
@abozahra, My pleasure, thanks very much for the message.
juristerei
⋅
Hi , mate! I downloaded a book
UnknownUnicorn180388
⋅
Hi Mark,
Great work ;-)
BB3
⋅
Hi Tom, Have been looking pretty hard at this setup. Do you always wait for C to D to be 1.272 * A to B ? Do you use AB =CD for a reversal?
Thank you in advance for answering this!
Look foward to any other patterns that you may care to share with us novices
UnknownUnicorn180388
⋅
@BB3, Hi,
I draw patterns as an area of interest, i then have a separate strategy criteria for my entry execution.
Predictindex
⋅
Every trade should have at least of 1:1.5 risk&return.
How's that different to flip a coin when you only have 50% chance to win???
UnknownUnicorn180388
⋅
@Predictindex, There is a huge misconception that the bigger the risk reward the more money to be made.
The larger the RR the lower your strike rate will be.
If your strategy has an edge over the market then trading a 1:1 at 1% / 2% will be profitable long term.
Many traders who must have a 1:2 RR base their targets based on a minimum return as opposed to market structure, which again lowers strike rate.
amilajayawi
⋅
Great work buddy. It was really helpful ^
UnknownUnicorn180388
⋅
@amilajayawi, Thanks very much, it's no problem at all.