A Bearish Gartley Pattern has formed on the Daily chart of the GBP/USD. See chart for pattern data. Please do your own calculations. Stop is Above X. I always put my stop Above X in a Bearish pattern and Below X in a Bullish pattern. Happy Trading!
Note: Some traders use terms for some of these patterns that Scott Carney is credited with (Crab, Bat, etc.). I do not use those naming conventions. A pattern is a Bearish Gartley if the D point is Below X. If the D point is Above X, I call it a Butterfly pattern. The fibonacci retracements in the pattern are important to me but not as important as the overall visual appeal. Books that you may find useful: "Trade What You See", by Larry Pesavento and Leslie Jouflas and "The Gartley Trading Method" by Ross Beck. "The Gartley Trading Method" book will be of particular interest to those who would like to know more about the evolution of the Gartley pattern and how different people have contributed to it and developed their own way of trading it as well as expanding on it. Hope this helps!
I have a sell position at 1.5470 and the price is above 1.5520 should I hold....?
WynnFX
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My stop is above point X. With the recent move up, I will redraw my Fibonacci profit targets but will not get out of short trade until price hits my stop or profit targets. Please see Reply to KenKam above. You may not be able to withstand the trade going against you up past point X, depending on the # of contracts you are trading compared to your account equity. If you are unsure about what to do, get out. Take a breather. Look at the Market tomorrow with a fresh perspective.
KenKam
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The up move is not yet complete, therefore it is too early to tell if the Gartley pattern is complete. There is every possibility that D will rise higher in the next few days. What is the rule for selecting point D? I see a small correction short of the profit targets you have, and then a further leg higher than D.
WynnFX
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I tend to be a little early. I have just learned to manage my risk really well so I can be early and eventually make money consistently with these patterns. I'll get out of this pattern if price goes above X. I will then re-analyze it as a Butterfly pattern and possibly re-enter on the Bearish side or start looking for Bullish Gartley/Butterfly patterns. As we all know too well, we can't be right 100% of the time. It wouldn't be any fun! : ) Thank you for your comments and input.
PacMan85
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As cable has staged a strong rebound after finding support at 1.5333 yesterday, suggesting caution on our short position entered at 1.5460 and resistance at 1.5480 needs to hold to retain prospect of another retreat, below 1.5380-85 would signal the rebound from 1.5333 has ended and bring another test of this level, break there would signal top has been formed, bring further fall to previous support at 1.5316, below there would add credence to this view, then weakness to 1.5300 (previous resistance) and later 1.5270 would follow.
danndc
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do you think that if we can go down from here, maybe the up move is over?
do you see a double top in H1 and M formation?
danndc
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do you think it's possible to see 150 in short term?
do you think we have topped out at 15479?
WynnFX
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Wish I could give you a good prediction. I just identify these high-probability patterns, set my fibonacci profit targets and let the market take its course. The GBP/USD is one of the more volatile Majors, so I think it could definitely re-test the 1.5000 area. That would be a retracement of the entire run up from A to D on my chart, which isn't out of the realm of possibility. How long will this take? Hard to say. Note: If GBP/USD continues up and goes beyond point X on my chart I'll start looking for Gartley/Butterfly Buy patterns (assuming that this Gartley doesn't turn into a Butterfly pattern. Hope this was helpful