I will be looking for reversal signs around where either a Gartley or an AB=CD pattern completes. This could signal the end of a possible ABC correction and the start of a new impulse wave up.
Several targets are possible, common are the 38.2 and 61.8% retracements, additionally for the AB=CD pattern there is also the 50% retracement which is of some importance (not shown here). In case of bullish trend continuation the next targets are a re-test of former highs and/or possible structure S/R levels on the minute/hourly timeframe (C and A of the pattern for instance) and on higher timeframes (daily/weekly)!
The 2 main setups depicted on chart are possible examples of good entries based on the patterns, SL's below X of the possible Gartley, target towards re-test of former highs (just 1 example: read the above paragraph!). The third small setup is an example (I just averaged the 2 entries of the main setups) of the part which I would leave open (10-20% max. of original position) in case it all works out and the uptrend continues... The target there is a higher timeframe fib extension and trendline re-test around the 1.1500 region...
Trade active
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Gartley entry made it almost exact to the pip..., first rally up made it to the 38.2% retracement..., I'll leave it open...
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Gartley 61.8% reached, partial profit and SL to BE
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Possible options to add longs in anticipation of a possible freshly started motive wave up:
Trade closed: stop reached
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Gartley worked perfect but no continuation up...
Comments
JackHong
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very nice! And I have a question what is you B point ratio?
KVE
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Hi, depends on what B you mean, but the retracements are on the chart, if you hover over the pink pattern you will see it more clear: for the Gartley >> B retraced 63% of XA and C 59.1 of AB.
JackHong
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sorry,actually I want to say C59.1 of AB is less than 61.8,it is right ratio?
KVE
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Yes it is, rules for Gartley C point: within range of 0.382–0.886 retracement