The Gartley Pattern The Gartley pattern was outlined by H.M. Gartley in his book Profits in the Stock Market, published in 1935. Although the pattern is named "The Gartley," the book did not discuss specific Fibonacci retracements! It was not until "The Harmonic Trader" was released that the specific retracements of the B point at a .618 and the D point at a .786 were assigned to the pattern. There are others who have assigned Fibonacci retracements to this framework. However, they use a variety of Fibonacci numbers at the B and D points. Despite these variations, the Fibonacci retracements that yield the most reliable reversals are the .618 at the B point and the .786 at the D point. Furthermore, the pattern should possess a distinct AB=CD pattern that converges in the same area as the 0.786 XA retracement and the BC projection (either 1.27 or 1.618). The most critical aspect of the Gartley is the B point retracement, which must be at a 0.618 of the XA leg.
Comments
Mberg
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Forgot to write: Check between A and C
titi
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Sorry for the late answer: I was in bed. I meant your C is too low for a Gartley, C should be between 0.386 and 0.886 of AB. In this Case it can be considered as a double bottom.
titi
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In your second picture of the reply, your C at 0.887 is not the lowest point that should be taken into consideration.
Hi Titi! Did you consider that this a a bearish gartley? I can not get your number right, can you specify? :) Did you use a Fib Res, Swing high B, to swing low A?
titi
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I think your C is too low for a Gartley, should be at leatst 0.386 AB