Hey guys! Looking on the 4 hour chart (borderline daily), we can clearly see a potential bullish Gartley formation. Our pattern is forming at a level where price is testing daily support, resistance which has recently been broken. Price is also just approaching a trend line which has already been tested twice on its current bull run. (see below)
Looking towards next week, we are expecting the EURO CPI and Trade Balance, followed quickly by the AUD Employment Change.
Taking this into consideration, price may get volatile as price either tests or breaks this new level of support. I will update as the position progresses!
Gartley ratios are as follows:
B: 0.618
C: 0.382 - 0.886
D: 1.272 - 1.618
X-D: 0.786
Comment:
I've taken the XABCD tool out of the picture for more clarity of price action but, as you can see, the D point for the Gartley could possibly land exactly on the point where our support meets our trend line! This would not be realistic when you look at the daily time frame and the distance price still has to move.
Comment:
** The p/l tool has been removed.