TomHall
Education

5 EASY STEPS TO TRADE THE GARTLEY PATTERN

FX:EURUSD   Euro / 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:
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Comment: 01.01.2016 - To date results

Comment: If you would like me to release my Bat Setup rules comment below.
Comment: My Bat setup strategy is now available below.

Comment:
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Great work buddy. It was really helpful ^
+1 Reply
TomHall TOP amilajayawi
@amilajayawi, Thanks very much, it's no problem at all.
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
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
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
Thanks tom, really apreaciate if you willing to explain and share with us your bat setup
Reply
TomHall TOP puterae1
@puterae1, My pleasure.
Reply
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