DavoodWadi
Short

Not Another Gartley Pattern - EURUSD

FX:EURUSD   Euro Fx/U.S. Dollar
163 16 5
It's often hard to find harmony between BC             legs in the Gartleys and the XA legs. They usually don't match up.

This is a different case in EURUSD             . As you can see, the 1.272 extension of BC             leg lies perfectly on the 78.6% retracement of the XA leg and also the 1.618 extension of the BC             legs lies perfectly on the 88.6% retracement of the XA leg.

Beautiful Harmony.

As for trading this pattern, I would rather wait for the test of the reversal zones before deciding to take the trade or not, considering the price action in EURUSD             is really bullish right now.
HexVex
2 years ago
Great title! :)
+1 Reply
DavoodWadi HexVex
2 years ago
Thank you :)
Reply
You don't trade the countertrend rally?
+1 Reply
DavoodWadi IvanLabrie
2 years ago
Honestly they are too risky for my style ;)
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russelldaily
2 years ago
Where is the PRZ and do you consider the ab=cd in a Gartley?
+1 Reply
DavoodWadi russelldaily
2 years ago
I consider all Internal Harmonic patterns valid when they reverse in the area in between 78.6% and 88.6%.
Especially in this case, that EURUSD had a higher than 61.8 wick on top of the candles I wasn't surprised to see the 88.6% line.

In this setup we have an AB = 1.618 CD at which the price reacted well.

Thank you for your comment russeldaily.
I'll be happy for more discussion.
Reply
russelldaily DavoodWadi
2 years ago
ab=1.618. That's a new one for me. I like it and will watch for it. Learned something today, and that's good.
+1 Reply
DavoodWadi russelldaily
2 years ago
AB is actually the start of wave 1 to the end of wave 3 in Elliott terms and the CD is the 5th wave.
AB being 1.618 of CD is quite common in Elliott wave principle.

In this setup we were actually aiming for the higher degree correction that corrected the whole impulse.

Thank you for your interest.
+1 Reply
IvanLabrie PRO DavoodWadi
2 years ago
Worked well...not a big fan of these patterns, but you applied it correctly.
How do you feel about pitchforks or ichimoku?
+1 Reply
DavoodWadi IvanLabrie
2 years ago
Thank you Ivan,
I don't use indicators unless for a divergence that I can't distinguish with my eyes.
But about the pitchforks, I'm really amazed by how well they work for the first reaction. You almost always get a first-time reaction by your pitchforks.
+1 Reply
IvanLabrie PRO DavoodWadi
2 years ago
They seem to be nice...I use bars and the weekly or daily range overlay indicator to see a bigger timeframe at the same. That's about it, I don't like anything that can be subjective and prone to failure, that's why I dismiss these patterns in my analysis.
Do you have a specific methodology for picking the fib pivots?
Would be interesting to know.
+1 Reply
DavoodWadi IvanLabrie
2 years ago
Cool, I would be glad to learn more about how you use them.

For fibs, first I do the Elliott Wave homework for the issue, then I spot a correction, then for each specific correction I do bunch of fib time and fib price to find areas of confluence.
The Elliott Analysis itself screens out bunch of fib ratios for me.
Reply
IvanLabrie PRO DavoodWadi
2 years ago
Ah, makes sense.
Most people trade price action and patterns without the EW component, but it's not my thing.
I mostly use what I learnt from Tim West, regarding bar chart reading, he has some of that stuff covered in his charts. :)
What do you think about this pair and usdchf during this week?
+1 Reply
DavoodWadi IvanLabrie
2 years ago
Good luck on your methodology,
Honestly I didn't study EURUSD this weekend. I've mostly put my focus on Gold in its ABCD correction.
I would let you know once I study these pairs. :)
+1 Reply
IvanLabrie PRO DavoodWadi
2 years ago
There's a slight correlation with gold, specially with chf, interesting definitely. :)
Strong ending diagonal/wolfe wave patterns in both chf and eur vs usd.
+1 Reply
DavoodWadi IvanLabrie
2 years ago
Would you post your interpretation please?
Reply
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