Alexander_Nikitin
Short

gartley advanced formation

FX:EURCAD   Euro Fx/Canadian Dollar
Gartley Advanced formation rules of engagement
Tools:
*Fibonacci retracements (61.8% and 78.6%)
*Fibonacci extension (127.2%)
Timeframes:
*The Gartley Advanced formation was originally designed as a swing trading strategy. But it also works on lower timeframes.
Tactics:
*Seek to identify 4 market moves and 3 major Fibonacci zones. The combination of these moves forms the points (X, A, B, C, D) that fulfill the formation.
Rules of engagement: Criteria 1
The Gartley Advanced formation starts with a market movement/impulse leg that establishes our X and A points.
Once X and A points have been identified, we then look for our first criteria.
Criteria 1: The market forms the B completion point by fulfilling at least a 61.8% retracement of the XA leg.
Note: AB move remains valid as long as there is at least a 61.8% retracement of XA and that it does not touch the 78.6% retracement of XA. Only candlewick is calculated here. Candle close is not important.
Rules of engagement: Criteria 2
If criteria 1 has been met, then look for criteria 2.
Criteria 2: The market forms the C completion point by fulfilling at least a 61.8% retracement of the AB.
Note: BC             move remains valid as long as there is at least a 61.8% retracement of AB and that it does not touch the 88.6% retracement of AB. Only candlewick is calculated here. Candle close is not important.
Rules of engagement: Criteria 3
If criteria 1 and 2 have been met, then look for criteria 3.
Criteria 3: The market forms the D completion (entry point) by fulfilling a 127.2% extension of AB.
Note: D point never extends past X.
Trade management: Entry, stops & targets.
Entry: Limit order is placed at D completion point.
Target 1: 38.2% retracement of AD leg. When attained half of the position closes & stop moves to breakeven.
Target 2: 61.8% retracements of AD leg.
Stop placement: Stop always goes past X. Either 113% XA extension, or 1 ATR beyond X, or 78.6% of the 1st target distance above/below the entry.
Comment: the pattern was invalidated
thanks for the info. will help learning the harmonic patterns
Reply
Alexander_Nikitin Elliottician_SamRoy
@Elliottician_SamRoy, Well, when you learn something, please, be attentive. I didn't say a word about harmonic patterns. What I was talking about is advanced formations. There's a great difference between the two.
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Elliottician_SamRoy Alexander_Nikitin
@Alexander_Nikitin, I dont even know the difference among harmonics and advanced. I always thought advanced is advanced level of harmonics :D
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Elliottician_SamRoy Alexander_Nikitin
@Alexander_Nikitin, by the way i think Gartley is harmonic pattern, isnt it?
Reply
Alexander_Nikitin Elliottician_SamRoy
@Elliottician_SamRoy, A "Gartley pattern" is a harmonic pattern. Scott Carney has registered it as a pattern that has special ratios. A "Gartley advanced formation" has a bit different ratios. Gartley pattern is traded with at market order after the completion of the trigger bar. Gartley advanced formation is traded with limit order that is triggered as soon as price reaches a specific level. The advanced formations are called "advanced" to emphasize the difference between the two approaches. As you know the limit order is placed in advance. Advanced formations are the "set-and-forget" strategies. Harmonic patterns are traded only at market if a trigger bar appears.
+1 Reply
Elliottician_SamRoy Alexander_Nikitin
@Alexander_Nikitin, thanks Alex
Reply
Alexander_Nikitin Elliottician_SamRoy
@Elliottician_SamRoy, you are welcome:)
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