TomHall

5 EASY STEPS TO TRADE THE GARTLEY PATTERN

FX:EURUSD   Euro Fx/U.S. Dollar
STAGE 1:
THE BULLISH IMPULSE LEG


A bullish impulse leg is a strong move in price action to the upside.
The impulse leg can be a mixture of bullish and bearish candles, but must have a bullish overall direction.
The start of the impulse leg should be marked as X and the top of the impulse leg should be marked as A.


STAGE 2:
B LEG RETRACEMENT


Now that you have identified your X to A impulse leg you are now looking for the B leg, which is a retracement of the X to A impulse leg.

Take your Fibonacci retracement tool and draw from your X leg to your A leg.
The crucial Fibonacci levels you are looking for are the 61.80% and 78.60%
Price action must at least touch the 61.80% retracement but cannot touch the 78.60% retracement.

As you can see by the illustration, the candle does not need to close below the 61.80% retracement but must at least spike through.
The bullish Gartley pattern will be invalid if price action touches the 78.60% retracement of the X to A move.


STAGE 3:
C LEG RETRACEMENT


Once you have identified a valid X to A impulse leg and a B leg retracement, you are now looking for a valid C leg retracement.

Take your Fibonacci retracement tool and draw from your A leg to your B leg.
The crucial Fibonacci retracement level you are looking for is the 61.80%
Price action must at least touch the 61.80% but cannot spike above the A leg resistance.
The candle does not need to close above the 61.80% but must at least spike through.

The bullish Gartley pattern will be invalid if price action spiked above the A leg resistance.


STAGE 4:
D LEG COMPLETION


Now that you have a valid X, A, B and C move you are looking for the final leg in price action at which point you will buy the chosen currency pair.

Take your Fibonacci retracement tool and draw from your B leg to your A leg.
You are looking for a 1.272% which will now give you a valid D leg completion of the bullish Gartley pattern.


STAGE 5:
PLACING YOUR TARGETS


When looking to take targets on the bullish Gartley Pattern the first step is to use your Fibonacci retracement tool.

With your Fibonacci retracement tool draw from the A to D leg, you are looking for target 1 at the 38.20% and target 2 at the 61.80%.
To protect the profits you have accumulated at target 1 it is advised you move your stop loss to breakeven once the 38.20% target 1 has been attained, thus giving you a risk free trade to target 2.


KEY NOTES & RULES:

When trading the bullish Gartley pattern, the pattern is meant to be traded at 1.272% D leg completion only.
If you believe the pattern is unfolding but price is only at point B, be patient and wait until price reaches the D leg completion.
The power of the pattern comes from converging Fibonacci levels of all points from X to D.

Point B must at least touch the 61.80% retracement but cannot touch the 78.60% from the X to A move.
Point C must touch the 61.80% but cannot spike above the A leg resistance.
Point D is complete when price action touches the 1.272% retracement of the B to A move.
Stop loss must be placed below the X leg structure support .
Stop loss must also be a minimum of a 1:1 risk reward to the 38.20% target 1.
Target 1 at the 38.20% retracement of the A to D move.
Target 2 at the 61.80% retracement of the A to D move.


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


CANDLE COLOUR:
Blue = Bullish Candle
White = Bearish Candle


DISCLAIMER:
Please note I am only providing my own trading information and techniques for your benefit and insight, you should do your own due diligence and not take this information as a trade signal.
Comment: 5 EASY STEPS TO TRADE THE GARTLEY PATTERN - Target 1

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Comment: 5 EASY STEPS TO TRADE THE GARTLEY PATTERN - Target 2

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Comment: 5 EASY STEPS TO TRADE THE GARTLEY PATTERN - Extended Target

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Comment: 5 EASY STEPS TO TRADE THE GARTLEY PATTERN - Risk Reward 1:1 Minimum

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Comment: 5 EASY STEPS TO TRADE THE GARTLEY PATTERN - AB-CD

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Comment:
EUR.USD - Bearish Bat & Cypher Setup - 1.0750 & 1.0739
Comment:
USD.JPY - BEARISH CYPHER SETUP - 114.316
Comment: 01.01.2016 - To date results

How Often Do You Review Your Trading Performance?
Comment: If you would like me to release my Bat Setup rules comment below.
Comment: My Bat setup strategy is now available below.

5 EASY STEPS TO TRADE THE BAT SETUP
Comment:
NZD.JPY - Bullish Bat Setup - 80.977
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Well done my friend! And thank you very much for putting the time and effort to help others!
+5 Reply
TomHall TOP Abozahra
@Abozahra, My pleasure, thanks very much for the message.
+3 Reply
Hi , mate! I downloaded a book
+3 Reply
TomHall TOP MarkSterensohn
Hi Mark,
Great work ;-)
+1 Reply
Hello mate! Hope, you're doing well!
Do you use Butterfly and Crab patterns, too?

I wanted to pick up a book Pesavento "Trade what you see" and today i have found this e-book on Forexfactory.com for free! Are you familiar? As i can see, Pesavento hasn't any Bat and Cypher patterns.
This book is from 2007. but describes Gartley "222" and Butterfly patterns. And how to recognize trend days.

Can you say smth.?
+1 Reply
TomHall TOP MarkSterensohn
@MarkSterensohn, I don't personally trade the Butterfly or the Crab.

I've personally never read a trading book so i couldn't recommend or give my opinion on any.
+2 Reply
@TomHall, thank you very much. But why? Results on backtesting? 'No good?
Reply
TomHall TOP MarkSterensohn
@MarkSterensohn, Hi Mark,
How do you mean sorry?
Reply
@TomHall, you don't trade neiher crab, shark, butterfly , because of bad backtesing bad results? Thx
Reply
TomHall TOP MarkSterensohn
@MarkSterensohn, Oh sorry I understand now.
As you know I don't trade patterns on there own, my strategy requires multiple other factors prior to a trade being taken.
Crabs, sharks and butterflys don't come close to meeting the rules of my required trade setup.
+1 Reply
TomHall TOP MarkSterensohn
@MarkSterensohn, Please note, it doesn't mean that they are not profitable, I just personally haven't backtested due to it not meeting my rules for entry.
+1 Reply
TomHall TOP MarkSterensohn
@MarkSterensohn, I have just had a quick glance at the "Trade what you see" reviews,it sounds like a well respected book.
Like i say i am unsure of the content as i have never looked into it.
+1 Reply
Sab MarkSterensohn
@Tomhall thanks tom you are genius
+1 Reply
@Sab, Thank you Sab, it's much appreciated.
Reply
Thank you very much for this valuable sharing... Best regards
+1 Reply
TomHall TOP ayildirim
@ayildirim, My pleasure, i hope it helps.
Reply
is there any clue to find out gartley pattern is going to appear before completely forming of it?
+1 Reply
@Alireza, The pattern is only complete once price hit's the D leg, until that point the pattern is not valid.
I hope that helps.
Reply
Alireza TomHall
@TomHall, Do you have another clues for entering a buy like here?
Reply
@Alireza, I don't quite understand sorry, do you have a chart in mind?
Reply
Thank you so much for sharing this, Tom! Are you planning on making guides for other harmonic patterns (bat, cypher etc.)? Also you mentioned in the comments that your strategy requires multiple other factors prior to a trade being taken. Can you add those factors to the guides too, if possible? Thanks again!
Reply
TomHall TOP Sibeerian
@Sibeerian, My pleasure, i am glad it has been helpful.
I will be distributing more content on other patterns very soon.

My entry strategy is not something i will release as it takes a number of months to teach, however the content above will more than aid you in your trading career :-)
Reply
Beautiful!
+1 Reply
TomHall TOP OpalSatiya
@OpalSatiya, Thanks very much :-)
Reply
Nice explanation, very interesting.
+1 Reply
TomHall TOP FlatMarketsHunter
@FlatMarketsHunter, Thank you, have a great week.
Reply
@TomHall, I certainly will, i hope you will do better than me :)
+1 Reply
TomHall TOP FlatMarketsHunter
@FlatMarketsHunter, I appreciate it :-)
Reply
good info, thanks..
EURUSD

+1 Reply
TomHall TOP MuhammadAmerAhmed
@MuhammadAmerAhmed, Thanks very much!
Reply
Every trade should have at least of 1:1.5 risk&return.
How's that different to flip a coin when you only have 50% chance to win???
+2 Reply
TomHall TOP Predictindex
@Predictindex, There is a huge misconception that the bigger the risk reward the more money to be made.
The larger the RR the lower your strike rate will be.
If your strategy has an edge over the market then trading a 1:1 at 1% / 2% will be profitable long term.
Many traders who must have a 1:2 RR base their targets based on a minimum return as opposed to market structure, which again lowers strike rate.
Reply
Hi Tom,

I noticed you have previously mentioned the profit targets are the 38.2% and 61.8% levels of CD leg, and you have now identified the AD leg instead. I just would like to seek clarification that the profit targets should be the fib levels of AD leg?
And this rule applies to both Gartley and Bat patterns?

Thanks
Reply
TomHall TOP reggiecyy
@reggiecyy, Hi,
That is correct, backtesting results show that taking profit levels from the top of the move ( A to D ) was more profitable.
That is for the majority of patterns i have tested.
Reply
reggiecyy TomHall
@TomHall, Wonderful. Thanks Tom!
Reply
TomHall TOP reggiecyy
@reggiecyy, No problem at all :-)
Reply
clear explanation, great job TOM, love your works
Reply
TomHall TOP puterae1
@puterae1, Thanks very much for your feedback.
Reply
I need to practice on this too! Thank u.
Reply
@solben, My pleasure, Keep up the good work.
Reply
Hi Tom.

Really love your work. I'm learning quite a lot from you. As a newbie I find that your patterns (accompanied your explanations) are really raising my game and seem to answer all the questions I have on harmonics.
+1 Reply
TomHall TOP Mr_Gedze
@Mr_Gedze, Hi,
Thanks very much, i'm glad it's been beneficial to your trading journey.
If you ever have any questions don't hesitate to pop them below the post.
Reply
Dear Tom,

Waiting for your Update.. no any update today..?
Reply
TomHall TOP PasinduRashmika
@PasinduRashmika, Hi,
I may post a chart this afternoon, i have to make sure my subscribers get the best content before i post on here.
I hope your week has started well.
Reply
Thanks Tom for that tutorial!

Do you use target1 only to advance your stop loss, or do you sometimes close the position there?
Thanks
Reply
@tomg10, No problem at all.

It's a good question but one i couldn't answer for you.
There are certain currency pairs that reach target 2 more often that others, so that is something to look into when you backtest, is it more viable to close the whole position down at Target 1 or let target 2 run.

If you have rules in your pattern that give you a high probability and strike rate then you can take your targets off at target 1 and still have a very profitable year.

These are the things you should look into when backtesting your patterns on particular currency pairs.
Reply
tomg10 TomHall
@TomHall, Thanks very much. You did answer the question
+1 Reply
@tomg10, That's great, i hope all goes well.
Reply
Hello, thanks for the education. Kindly help me out here. Other literature and training guides put a valid D point at each of the following points. kindly state which you agree with or disagree with and why

1. D is the 127.2% retracement of |BC|
2. D is the 78.6% of |XA|

I will be very grateful for the input of everybody. Thank you
+1 Reply
@Obsy, Hi,

Some traders use the 88.60% of the XA which is fine also, however all traders should do their own backtesting prior to trading patterns.

Backtesting is essential not only from a psychology point of view, but also from a results standpoint.
Peoples profitability with patterns will differ due to size of account, time frame, currency pair and many other factors, so once you have your backtest results you can that adjust those factors accordingly.

I hope that helps a little.
Reply
Obsy TomHall
@TomHall, thanks. Yh. It did help
Reply
Thx for explaining this critical pattern.

Simple and understandable for new traders like me.

Best Regards

+1 Reply
Ebicer Ebicer
@Ebicer, Btw,could u pls explain bearish version too?

Thx in advance
Reply
@Ebicer, I will do my best to get it done for you.
Reply
@Ebicer, Thanks very much for the feedback it is much appreciated.
Reply
thanks very much for this topic tom
i have got some ideas very beneficial
+1 Reply
TomHall TOP mohskikda
@mohskikda, My pleasure, i'm glad it has helped.
Reply
Hi Tom, Thank you for taking the to help clear the waters for us novices---Great explanation
+1 Reply
@BB3, Hi, My pleasure :-)
Reply
1.excuse Tom something I do not understand ... if fibo drawn from point A to point B and point C must not be more than A (maximum 61.8 Fibo ) have given such transactions on USD / CAD and AUD / USD.
2. When I add in fibo retracemant properties 78.60% and 1.272% levels , gives me no point D with you
something I do not do or do not I understand, thank you
Reply
TomHall TOP catalintic
@catalintic, Hi,
I don't quite understand the questions sorry.
Reply
catalintic TomHall
is simple in transactions on Usd / Cad and Aud / Usd point C is above point A, why?
Reply
TomHall TOP catalintic
@catalintic, Could you send me a link to the charts please so i can take a look.
Reply
catalintic TomHall
https://www.tradingview.com/chart/AUDUSD/Yo0erajc-AUD-USD-BEARISH-CYPHER-SETUP-7483/?utm_source=notification_email&utm_medium=email&utm_campaign=notification_publish
https://www.tradingview.com/chart/USDCAD/G7Jwooef-USD-CAD-BEARISH-CYPHER-SETUP-1-3498/?utm_source=notification_email&utm_medium=email&utm_campaign=notification_publish
Reply
TomHall TOP catalintic
@catalintic, Both patterns are not a Gartley pattern that's why the C leg is extended.
Reply
catalintic TomHall
I understood, as put in Fibo level of 1.272% to give me point D? because in practice this does not correspond to point D from you
Reply
TomHall TOP catalintic
@catalintic, That is correct the Gartley setup is completely different than the Cypher, Bat , Shark and all other setups.
The information above is my personal rules to trade the Gartley Setup only.
Reply
Forex_Col TomHall
@TomHall, im using fcxm app a lot. Dont go on the computer much as I am at work. I take it I need to use the computer for this. Tried on phone and just make a mess.
Reply
Hi Tom, Have been looking pretty hard at this setup. Do you always wait for C to D to be 1.272 * A to B ? Do you use AB =CD for a reversal?
Thank you in advance for answering this!
Look foward to any other patterns that you may care to share with us novices
+2 Reply
@BB3, Hi,
I draw patterns as an area of interest, i then have a separate strategy criteria for my entry execution.
Reply
thank you Tom.
If I may clarify something that I'm confused about..!
With regards to Stage 4, D leg - you mentioned that a Fibonacci retracement needs to be drawn from B leg to the A leg. I've been doing it from the B to C leg :(
+1 Reply
@Darin, Yes i would personally draw it from B to A
Reply
Darin TomHall
@TomHall, thanks Tom, much appreciate it - have a pleasant weekend.
Reply
Thanks for this Tom. I've just started learning and really appreciate you taking the time to help walk us through this pattern. Much appreciated.
+1 Reply
TomHall TOP Sapphira
@Sapphira, My pleasure, more is to come :-)
Reply
Hi Tom, really enjoyed this one!!! Thanks
Do you have one for the Butterfly pattern??
+1 Reply
TomHall TOP BambooGrowth
@BambooGrowth, Hi,
I don't personally trade the butterfly.
Reply
Thanks for reposting this Tom. Awesome work and great details provided. Ive been following your usage of it and it's very effective.
Keep up the good work. You're a very good trader
+1 Reply
TomHall TOP ewaverider
@ewaverider, Thanks very much for the feedback, it's much appreciated.
Reply
Yes!! Mr.Master, it will be very helpful for us if you share! also we can share other too.. who where not in this group.. Thanks!!
Have a Great Weekend !!
+1 Reply
TomHall TOP prashanthc
@prashanthc, I will do my best to get it sent out on Sunday for everyone :)
+1 Reply
prashanthc TomHall
@TomHall, Thank you !! God Bless!!
Reply
Sure!
+1 Reply
TomHall TOP StoykoKirchev
@StoykoKirchev, I will get it sent out very soon if there is enough interest.
Reply
hey tom i wish could see this before :D

bat setup rules will be awsome

thx a lot
+1 Reply
TomHall TOP Hamburabi
@Hamburabi, That's perfect, i'll get it written up.
Reply
AlexKl TomHall
@TomHall, Great work Tom. Please also, the bat setup rule would be great. Thanks and Rgds.
Reply
@AlexKl, Keep an eye out on Sunday evening :-)
Reply
@TomHall Please release your Bat Setup rules :) That would be a GREAT help! Thanks again for sharing this precious information here!
+1 Reply
TomHall TOP sandy027
@sandy027, I've decided to release it so look out on Sunday evening :-)
Reply
Thanks tom, really apreaciate if you willing to explain and share with us your bat setup
Reply
TomHall TOP puterae1
@puterae1, My pleasure.
Reply
@TomHall, thumbs up sir
Reply
That is such a brilliant post - extremely helpful and will benefit nearly everyone that comes across it. -Thank you for sharing
+1 Reply
TomHall TOP SaeedRehman
@SaeedRehman, Thanks very much for the feedback, i will be releasing my Bat setup rules on Sunday which may also be beneficial.
Reply
I believe in these patterns and know they are present - I seem to always find it difficult to identify the name of the pattern I am presented with (most times)- but I can spot them most times. I have stopped trying to identify them as I tend to leave that to the experts
Reply
TomHall TOP SaeedRehman
@SaeedRehman, Call the pattern whatever suits you, as long as the fibs are correct that work for you that's all that matters.
Reply
good job mate...you made it quite simple for newbies to understand.... :)

thanks....gonna learn it and backtest it so as to learn how to apply in real time....

good job mate...thanks for the share.... :) :) :)
+1 Reply
TomHall TOP investwisely2016
@investwisely2016, My pleasure, i'm glad it was helpful.
Reply
Great work buddy. It was really helpful ^
+1 Reply
TomHall TOP amilajayawi
@amilajayawi, Thanks very much, it's no problem at all.
Reply
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