TomHall

LEARN TO TRADE THE GARTLEY PATTERN IN 5 EASY STEPS

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 before trading the pattern.


Website: www.UKForexSignals.com
Instagram: www.Instagram.com/UK_Forex_Signals
Instagram: www.Instagram.com/Tom_Hall_Official
Twitter: www.Twitter.com/Tom_H_Official


DISCLAIMER:
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.
Website: www.UKForexSignals.com
Instagram: www.Instagram.com/UK_Forex_Signals
Instagram: www.Instagram.com/Tom_Hall_Official
Twitter: www.Twitter.com/Tom_H_Official
StockTwits: www.StockTwits.com/TomHall
hoza_saad
10 months ago
thank you for information , do you think taking the pattern only with general trend is better ?
+1 Reply
TomHall TOP hoza_saad
10 months ago
Hi,
No problem at all, personally yes i always advise trading with the overall trend.
+1 Reply
hoza_saad TomHall
10 months ago
great because my testing shows when i take patterns against trend it fail
+1 Reply
TomHall TOP hoza_saad
10 months ago
If that is what your backtesting has revealed then i certainly advise you stick with it.
+1 Reply
Forex4Africa PRO
10 months ago
Thanks for this great piece of info. Very interesting!
+1 Reply
TomHall TOP Forex4Africa
10 months ago
Not a problem, i hope it helps.
+1 Reply
JFinTrade
10 months ago
well done!
+1 Reply
TomHall TOP JFinTrade
10 months ago
Thank you.
+1 Reply
BLUE43 TOP
10 months ago
AUDNZD - PERFECT GARTLEY LOL
+2 Reply
TomHall TOP BLUE43
10 months ago
Very nice setup mate.
Reply
rod.botovchenco PRO
10 months ago
Thank you for this Tom, very clear and easy to understand. Cheers!
+1 Reply
TomHall TOP rod.botovchenco
10 months ago
No problem at all, thanks for the feedback.
Reply
EliK
10 months ago
So basically you buy at D.
+1 Reply
TomHall TOP EliK
10 months ago
That's correct.
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out