Remember that in a valid "222":
- D cannot exceed X
- BC cannot exceed XA
- AB cannot exceed X
(7) shows we're almost overbought so:
- Stops below X
- BUY @ 132.90-ish
- TP 1 @ the . of AD (132.78-ish)
- TP 2 @ the . of AD (133.9-ish) and don't forget to move your stop up to break event at this point
If D exceeds X then we potentially have an opportunity to get long if a forms.
With Pt. B right about .500 and Pt D @ .886, to my eye,
this looks like a Bat pattern.
Is a Gartley 222 the same pattern but with a Gartley name ?
Thanks for your thoughts ~~~~~
Wishing you lots of pips in your pocket for 2015 !!!!!!
Supposedly this pattern was originally described in page 222 of HM Gartley's book "Profit in the Stock Market" so that explains the 222
I realized why I thought that Scott Carney book "The Harmonic Trader" was a better refinement of the various patterns that traders use today.
Pesavento's book is GREAT, BUT, his ratio rules are so wide, almost vague, that any
ratios in between X to A could be considered a Gartley until it fails and then it
becomes a potential Butterfly, but, again, the ratios for a Butterfly are so many
that you have no basis for a butterfly "until" a Gartley fails.
Anyway, with such wide ratio rules and my empirical evidence in trading
the more precise rules of Scott Carney, it seems an improvement to Pesavento's
Great work. Having read Pesavento first and then Carney I would recommend
that to other new traders.
Wishing you LOTS of pips in your pocket ~~~~~~~~~~~~~~~