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.
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
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A step by step guide to draw the Bat setup as requested.
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.
UnknownUnicorn180388
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Thanks very much, appreciate it.
You also take care.
Oztrade
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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.
UnknownUnicorn180388
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I agree, I will be subsequently adding additional information throughout the week.
UnknownUnicorn101425
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Oztrade its great to find your posts around the Tradingview, you are turning into a bad ass Fib pattern trader! You had your trade idea in the weekly trade idea E-mail dome weeks ago! It just makes me happy! keep at it! i´ve been down for almost 3 weeks last month because of the health issues, but i finished off with a 11,54% return for the month despike only 3 trading weeks. Keep the fear and greed away and go at it! Have a good trading week! Both to Tom Hall and you!
Kind Regards
Thomas Jeff
UnknownUnicorn101425
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Ohh sorry despike only a week and a half trading week =D
Oztrade
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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
UnknownUnicorn180388
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Nice return on the month mate, keep up the good work.