Akil_Stokes
Short

GBPJPY: Bear Gartley Formation (Follow Up On Last Week's Video)

FX:GBPJPY   British Pound/Japanese Yen
Following up on the video that I shared with you guys last week, making a few predictions on the GBPJPY             . We are now approaching a retest of the "B" leg for this potential Advanced Gartley Formation. (By the way well done 2618 traders!)

If you remember I was looking for a trend continuation opportunity & this advanced pattern formation would be a perfect entry point as it approaches our previous minor level of structure.

Best of luck with your trading this week!

Last week's trading video on the GBPJPY             https://www.youtube.com/watch?v=lJhwOPSvlcc
Trade active
Trade closed: target reached: 1st positions hit targets for +84 Heck of a start to our week considering EURJPY & GBPUSD both rolled over as well!
Comment: If you have questions about this trade setup, I'll be live on Periscope today at 12:30 est. Username @akilstokesRTM or you can watch live at http://www.periscope.tv/akilstokesrtm
thanks akil
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you're welcome
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Kinda exciting week ahead with quite a few patterns on the radar. Good Luck!
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Awesome, let's hope that they work in our favor
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Great idea!
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Thank you
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Thanks for your consideration Akil,, i was wrong there and that was an invalid pattern but due to unknown issues with http://www.tradingview.com here i have to use mt4 instead,, so that was a mix up.. thanks anyway...
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Akil_Stokes PRO NafeesulHassan
No problem, data here on tradingview may be different than your personal brokers
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Hi Akil, Is this pattern still valid?
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Yes, it looks like the "D" completion was just hit
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petery PRO Akil_Stokes
If the price goes above point X is the pattern still valid?
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Nemo75 petery
A point D exceeding X could lead to a valid Butterfly formation, which is kind of more risky than the Gartleys because of the stops that need to be found in former structure (look left ...) and therefore usually are in a bigger distance to the entry than they use to be in Gartleys.
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Technically no
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Nemo75 Akil_Stokes
Hi Akil, I would appreciate if you explain why.
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The no answer was to the Petery's question about the Gartley being invalid once X is violated
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Nemo75 Akil_Stokes
I read that in Larry Pessaventos "Trade what you see":
Quote from page 69:
The Butterfly pattern is best described as an extension pattern. It is also a failed Gartley pattern where the D completion point completes above the X. Remember that a Gartley pattern is considered a failed pattern if this occurs, but with this failure a Butterfly pattern may be forming.
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Once the X leg is penetrated the Gartley pattern is failed, however you're correct it could end up being another advanced pattern depending on your rules. I require a 78.6 retracement on the "B" leg for it to be a valid butterfly but many tradrs will look at a failed Garltey as Crab pattern
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Nemo75 Akil_Stokes
Thank you for clarifying and your explanation.
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No problem
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This, the x will not have a problem.
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I'm sorry but I'm not sure I understand your question
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Hopping in now, wish I would have seen this earlier.
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Akil_Stokes PRO Callaghanind
There will be more opportunities, there always are
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Good call Akil ! Whats your rule for the C leg ? Because the C leg extends beyond the 786 retracement of AB. As of right now, a C leg at or beyond 786 nullifies my Gartley. Do you recommend more flexibility in the C ? Thanks again
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As long as it doesn't violate the A leg then it's valid for me
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and thanks
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thanks for the great idea Akil. i also saw this pattern after i woke up and traded it. i was so confident and glad to be in the trade since it had a great RR. Nevertheless my first position was stopped out at 155.52, the very high of the day! also i closed my second position at breakeven since prices went above X. frustrating lol. anyway keep up the great work!
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man i hate when that happens Phl, unlucky, keep fighting and continue to follow the plan. The markets reward those who do
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Nice trade Akil, I was wondering if you entered at 154.93... where was your stop and takeprofit. I see it made a roughly 60 pip move against you. How close did it come to your stop and what was the R:R on this trade? Again,,, way to go..
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my stops were a little more than an ATR above the X leg & my initial profit target was at the 38.2 fibonacci retracement
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Jimdandy Akil_Stokes
I assume you use the 14ATR of the HOURLY chart. Unless you use a 7ATR like the 7RSI?
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I use a 7 Period ATR
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Sorry forgot to say thank you for the kind comment as well
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Interesting perspective on another currency pair USD/CAD and US Dollar Index:http://www.clivemaund.com/article.php?art_id=3773&PHPSESSID=4d9ed8c7c100f8eaaaca9fde4fbdc9d4
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Well failed gartley can possibly make a butterfly not crab. For crab the B point retracement needs to be less than 0.618. clearly mentioned in harmonic trading by scott carney.
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Akil_Stokes PRO SaifurRahman
Nice! I'm not a Butterfly or a Crab pattern trader, so i fully admit that I'm not the one to be giving advice on those particular pattern formations. For butterflies to be valid I require a "B" retracement of a 78.6 which would invalidate the gartley formation before it's even formed which is why i don't think of a butterfly as a failed gartley, but I know we're also somewhat unique in our specific ratio requirements for these advanced formations
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SaifurRahman PRO Akil_Stokes
HI Akil . Thanks for your point of view. you are right there are different ratio requirements that traders follow. Some trader does not require precise 0.618 B point retracement as gartley and consider any retracement between .618 & .786 as gartley.
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Akil_Stokes PRO SaifurRahman
Agreed
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