TradingView
fximperija
Jan 31, 2014 9:37 AM

Retesting lows @868? Long

Australian Dollar/U.S. DollarFXCM

Description

Looks like AU is going to retest the lows and rise. Time will show.
Comments
dojitrader
I was wondering, since for me the lower low on C to D has now made this pattern much less likely
to be successful, if your experience has found otherwise and at what point do you declare
this pattern invalid - other than D being stopped out - and move on to the next one ?
Thanks for your thoughts and insight !!!
fximperija
As you can see the wick in the C point range didn't reach A, therefore this is still a valid pattern point and shows that the PA is turning down. The PA should not violate previous points, otherwise patterns becomes invalid. The Gartley isn't my favorite, with a success rate of 60-70%. In my experience, deep patterns like this one (deep ret. of XA) tend to reach T2's. Any PA closing below X makes this pattern invalid, closing, not a wick punch. Patterns should be used as guidelines for entries. I always place 1 position around the expected D point and save another one if the PA goes toward X. If PA stops near D and shows signals of reversal I add another position which moves my general entry even lower for better RR ratio. Should the PA violate X, I close my positions, take the blow and move on. 3 or 4 loosing trades out of 10 should make you profitable if you stick to your rules.
More