The main rules of the Bullish and Bearish Gartley are as follows:
AB must retrace 61.8% of the XA leg
BC can retrace between 38.2% – 88.6% of AB
CD can be an extension of 1.272% – 1.618% of AB
CD can also be a retracement of up to 78.6% of XA leg
The point D is known as the PRZ or Potential Reversal Zone
The most famous aspect of H.M Gartley’s book is the Gartley 222 Pattern, named after the page number where H. M. Gartley outlines the trading methodology using the Gartley pattern.
Most traders who might have come across references to the Gartley pattern will know their close relation to Fibonacci numbers. Strangely, H.M Gartley never included the Fibonacci relation in his original work and instead used one-thirds and two-thirds of ratios between the various swing moves. It was later developed by Scott Carney and Larry Pesavento which is now widely accepted as the standard for trading the many patterns originally discovered by H.M Gartley. The Gartley patterns became the focus and choice of trading for most traders as it was proven that these patterns have a high success rate. In his book, H.M Gartley noted that in a 10 year period, the Gartley patterns had a high success rate, 7 out of 10 times.
AB must retrace 61.8% of the XA leg
BC can retrace between 38.2% – 88.6% of AB
CD can be an extension of 1.272% – 1.618% of AB
CD can also be a retracement of up to 78.6% of XA leg
The point D is known as the PRZ or Potential Reversal Zone
The most famous aspect of H.M Gartley’s book is the Gartley 222 Pattern, named after the page number where H. M. Gartley outlines the trading methodology using the Gartley pattern.
Most traders who might have come across references to the Gartley pattern will know their close relation to Fibonacci numbers. Strangely, H.M Gartley never included the Fibonacci relation in his original work and instead used one-thirds and two-thirds of ratios between the various swing moves. It was later developed by Scott Carney and Larry Pesavento which is now widely accepted as the standard for trading the many patterns originally discovered by H.M Gartley. The Gartley patterns became the focus and choice of trading for most traders as it was proven that these patterns have a high success rate. In his book, H.M Gartley noted that in a 10 year period, the Gartley patterns had a high success rate, 7 out of 10 times.
Comment:
T1 200 PIPS. You're welcome ()(-_-)()