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# How To Trade The Gartley Pattern.

FX:EURUSD   Euro Fx/U.S. Dollar
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Above Is an illustration of a complete Gartley Pattern and the rules and ratios needed to trade this pattern.

First things first, grab your Fibonacci tool and draw from the X to A leg of the initial move or impulse leg.
The Fibonacci ratio's you are looking for are the 0.618% and the 0.786%, price MUST at least touch or spike through the 0.618% but not touch or exceed the 0.786%.
The price reversal zone is shown in the white box.

Now you have the B leg we are looking for the C leg which is a retracement of the A to B move.
Once again grab your Fibonacci tool and draw from the A leg to the B leg, you are looking for a minimum of the 0.618% retracement.
On the C leg the price reversal zone is a little wider, price MUST hit the 0.618% but not exceed the A leg, which is once again shown in the illustration above.

Once you have the X A B and C legs you are looking for the final piece of the jigsaw which is the D leg completion and the area you are looking to buy.
there are a couple of different ways to get the D leg however they both end up at the same price, for me personally I use the Fibonacci retracement tool.
To get the D leg take your Fibonacci tool and draw from the B to A leg which will give you a 1.272%.
Once price falls to the 1.272% all criteria's are met, at which point you would buy in anticipation that price will rise.

TARGETS:
When looking to take targets on this pattern the first step is to once again use your Fibonacci tool.
Take your Fibonacci tool and draw from the C to D leg, you are looking for the 0.382% and 0.618%.
If this is the method you are looking to use for targets you would have your broker take off half of your position at the 0.382% and the other half at the 0.618%
To protect the profits you have accumulated it is advised to move stop loss to breakeven once the 0.382% target 1 has been attained, thus giving you a risk free trade and money in the bank.

STOP LOSS:
When looking to place your stops there are again many ways this can be done, but should always be placed below the X leg.
Your risk reward should be a minimum of 1:1 on every trade to the 0.382%, if this can not be achieved then I would not personally take the trade.

CURRENCY PAIR:
This pattern like any other and is more profitable with certain currency pairs, you should do your own back testing on this before trading the pattern.

I hope this is a more in-depth insight to advanced patterns in particular the Gartley Pattern .
I am available via private message for any questions you may have.

WEBSITE:
http://www.UKForexSignals.com

DISCLAIMER:
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.
Comment: A step by step guide to draw the Bat setup as requested.

Website: http://www.UKForexSignals.com
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Nice work Tom, its great to see traders putting in the time and explanation to help those who don't fully understand advanced patterns. Takes a while to compose illustrations like this. Happy Trading This week.
Thanks very much, appreciate it.
You also take care.
Thank you, That is very helpful and kind of you. have a good week & take care...your a star.
Cityfox
I hope it's beneficial :-)
Have a good weekend.
This is educational, i cant wait for the new week ahead Tom. Thank you
Hi Tom, do you always trade Gartley at the 1.272 Fib Extension - or do you use the analysis of the X leg to A Leg - 78.6% Retrace Level - Copy and Paste the A to B leg for an Equal Length C to D completion - and Then use the 1.272% Fibonacci Extension from A to B Leg - providing you with the Potential Kill Zone? As we know a perfect Gartley Pattern is where all the criteria is met being and exact 78.6% XA Retrace - 1.272% Ext and a perfect AB=CD move - maybe you could post this as well for the traders to see when we do not have a perfect Gartley.
I agree, I will be subsequently adding additional information throughout the week.

Kind Regards
Thomas Jeff
ThomasJeff_DCM
Ohh sorry despike only a week and a half trading week =D
ThomasJeff_DCM
Thanks for the kind words TJ - yeah Tom has great insight for many traders. And yeah hope your back is getting better every day. All the best
ThomasJeff_DCM
Nice return on the month mate, keep up the good work.
asiansupermarket
Thanks very much!
Excellent Tom!
marcus123
Thank you.
Thank for the info Tom.
No problem at all.
Beautiful. An absolute gem.
OptimusPrime
Thank you, hopefully it is valuable content for everyone.
thanks you
Thanks
great..thks!
what about the bat/Butterfly pattern if you can explain it that would be nic
thanks a lot Tom
I will be looking to an illustration on them soon.
TomHall
thank you very much :)
Very nice. Thanks for the info!
Thank you, for taking the time and sharing your knowledge, I am relatively new to patterns and this was a great help!!!
Neill
No problem at all, best of luck with everything.
TomHall
Sorry to be so forward, but, do you have similar explanations on the other patterns, if so how would one go about accessing them, once again THANKS
Neill
I will be posting the Bat & Cypher patterns very soon.
TomHall
Thanks Tom. Appreciate taking the time to show and explain.
HP
my pleasure.
TomHall
Thank you
After the very positive feedback received from the Gartley Pattern explanation, I have drawn another illustration this time explaining my interpretation of the Bat Pattern
TomHall
Once again my imense appreciation for both Bat and Cypher explanations, THANK YOU
Neill
My pleasure Neill, i hope it all helps.
How To Trade The Cypher Pattern
TomHall
just a thought for newbies who may be confused by the terminology.
at point C, you refer to the "extension" of the A to B move.
The direction of the A to B move is downward, and the word "extension" would imply a farther move in the same direction downward.
The move from B to C is a "retracement" (reverse direction) of the A to B move, and an "extension" of that retracement reverse move. It extended beyond the point of origin.
Thanks
Pleases someone tell me how he eliminated the space between candles,
I would love to be able to do that on my charts.
kixszr54e3
I had to draw each candle manually, you can't eliminate candles.
TomHall
It´s great you made all the patterns, or at least the ones i think is the best and most profitable and show TradingView users the correct ratios, there is sooo many people trading bad patterns that just destroy their profitability, and if they would just adjust slightly and to the " Correct " ratios their trading would turn a major corner. And as you write its soo important to backtest! Repetition is the mother of all skills! Keep up the good work i like to follow you and your new page. I know how much time i takes to make content for teaching so i really take my hat of to all that work you are putting out there.
ThomasJeff_DCM
Appreciate the kind words.
I couldn't agree more, I think too many traders want to trade 20 currency pairs and trade anything, just because you have a good plan doesn't mean capital should be at risk on every setup, sometimes cherry picking the best is key.
I hope the information has helped some traders grasp the basics.
TomHall
thank you gentlemen
Thank TomHall
doisdo
No problem at all.
Thank You very much!
Could you write what kind of fib you use and from where to where you take it?
Thank you!
Anyone has done this for Trading View? Any code or study?
when I read every ideas that you made a years ago. I've notice that I am still far-far away to understand the market. eventhough I already have consistency in profit but I only use 1-2 setup. i'm interested in gartley formation. Is garley formation is like double top or head and shoulder formation. which means is reversal zone? or pattern that it will be bounce back from those area?
tirta18
@tirta18, Hi,

I will update above on the comments section my rules for the Bat & Gartley which is updated.
TomHall
@TomHall, thankyou
tirta18
@tirta18, My pleasure.
TomHall
@TomHall, just know when I applied gartley pattern on my trade, and I end up closed my trade early, and it gives me a more profit for me. I notice that those pair will bounce back by use gartley pattern. I'll mix this theory with my setup. thank you...every single word you said here will really help every trader.
tirta18
@tirta18, Really appreciate the comment.
Thanks for you sharing:)
@tianmad, No problem at all :-)
Great shares. Thanks for your help tom.
huysuz51
@huysuz51, My pleasure, have a good weekend.
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