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# 5 EASY STEPS TO TRADE THE GARTLEY PATTERN

FX:EURUSD   Euro Fx/U.S. Dollar
5925 101
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.

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.

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.

You are looking for a 1.272% which will now give you a valid D leg completion of the bullish Gartley pattern.

STAGE 5:

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

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

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

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

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

Comment:
Comment:
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:
Website: http://www.UKForexSignals.com
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Well done my friend! And thank you very much for putting the time and effort to help others!
Abozahra
@Abozahra, My pleasure, thanks very much for the message.
MarkSterensohn
Hi Mark,
Great work ;-)
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.?
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.
TomHall
@TomHall, thank you very much. But why? Results on backtesting? 'No good?
MarkSterensohn
@MarkSterensohn, Hi Mark,
How do you mean sorry?
TomHall
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.
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.
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.
MarkSterensohn
@Tomhall thanks tom you are genius
Sab
@Sab, Thank you Sab, it's much appreciated.
Thank you very much for this valuable sharing... Best regards
ayildirim
@ayildirim, My pleasure, i hope it helps.
is there any clue to find out gartley pattern is going to appear before completely forming of it?
Alireza
@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.
TomHall
@TomHall, Do you have another clues for entering a buy like here?
Alireza
@Alireza, I don't quite understand sorry, do you have a chart in mind?
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!
Sibeerian
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 :-)
Beautiful!
OpalSatiya
@OpalSatiya, Thanks very much :-)
Nice explanation, very interesting.
FlatMarketsHunter
@FlatMarketsHunter, Thank you, have a great week.
TomHall
@TomHall, I certainly will, i hope you will do better than me :)
FlatMarketsHunter
@FlatMarketsHunter, I appreciate it :-)
good info, thanks..

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???
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.
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
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.
TomHall
@TomHall, Wonderful. Thanks Tom!
reggiecyy
@reggiecyy, No problem at all :-)
clear explanation, great job TOM, love your works
puterae1
@puterae1, Thanks very much for your feedback.
I need to practice on this too! Thank u.
solben
@solben, My pleasure, Keep up the good work.
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.
Mr_Gedze
@Mr_Gedze, Hi,
If you ever have any questions don't hesitate to pop them below the post.
Dear Tom,

Waiting for your Update.. no any update today..?
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.
Thanks Tom for that tutorial!

Do you use target1 only to advance your stop loss, or do you sometimes close the position there?
Thanks
tomg10
@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.
TomHall
@TomHall, Thanks very much. You did answer the question
tomg10
@tomg10, That's great, i hope all goes well.
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
Obsy
@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.
TomHall
@TomHall, thanks. Yh. It did help
Thx for explaining this critical pattern.

Simple and understandable for new traders like me.

Best Regards

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

Ebicer
@Ebicer, I will do my best to get it done for you.
Ebicer
@Ebicer, Thanks very much for the feedback it is much appreciated.
thanks very much for this topic tom
i have got some ideas very beneficial
mohskikda
@mohskikda, My pleasure, i'm glad it has helped.
Hi Tom, Thank you for taking the to help clear the waters for us novices---Great explanation
BB3
@BB3, Hi, My pleasure :-)
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
catalintic
@catalintic, Hi,
I don't quite understand the questions sorry.
TomHall
is simple in transactions on Usd / Cad and Aud / Usd point C is above point A, why?
catalintic
@catalintic, Could you send me a link to the charts please so i can take a look.
TomHall
catalintic
@catalintic, Both patterns are not a Gartley pattern that's why the C leg is extended.
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
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.
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.
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?
Look foward to any other patterns that you may care to share with us novices
BB3
@BB3, Hi,
I draw patterns as an area of interest, i then have a separate strategy criteria for my entry execution.
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 :(
Darin
@Darin, Yes i would personally draw it from B to A
TomHall
@TomHall, thanks Tom, much appreciate it - have a pleasant weekend.
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.
Sapphira
@Sapphira, My pleasure, more is to come :-)
Hi Tom, really enjoyed this one!!! Thanks
Do you have one for the Butterfly pattern??
BambooGrowth
@BambooGrowth, Hi,
I don't personally trade the butterfly.
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
ewaverider
@ewaverider, Thanks very much for the feedback, it's much appreciated.
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 !!
prashanthc
@prashanthc, I will do my best to get it sent out on Sunday for everyone :)
TomHall
@TomHall, Thank you !! God Bless!!
Sure!
StoykoKirchev
@StoykoKirchev, I will get it sent out very soon if there is enough interest.
hey tom i wish could see this before :D

bat setup rules will be awsome

thx a lot
Hamburabi
@Hamburabi, That's perfect, i'll get it written up.
TomHall
@TomHall, Great work Tom. Please also, the bat setup rule would be great. Thanks and Rgds.
AlexKl
@AlexKl, Keep an eye out on Sunday evening :-)
@TomHall Please release your Bat Setup rules :) That would be a GREAT help! Thanks again for sharing this precious information here!
sandy027
@sandy027, I've decided to release it so look out on Sunday evening :-)
Thanks tom, really apreaciate if you willing to explain and share with us your bat setup
puterae1
@puterae1, My pleasure.
TomHall
@TomHall, thumbs up sir
That is such a brilliant post - extremely helpful and will benefit nearly everyone that comes across it. -Thank you for sharing
SaeedRehman
@SaeedRehman, Thanks very much for the feedback, i will be releasing my Bat setup rules on Sunday which may also be beneficial.
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
SaeedRehman
@SaeedRehman, Call the pattern whatever suits you, as long as the fibs are correct that work for you that's all that matters.
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.... :) :) :)
investwisely2016
Great work buddy. It was really helpful ^
amilajayawi
@amilajayawi, Thanks very much, it's no problem at all.
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