The harmonic patterns way of trading is an entirely different approach to trading the markets and is based on the discovery by H. The book was a lengthy one at that and back in the days it sold for a premium.
The most famous aspect of H. Gartley outlines the trading methodology using the Gartley pattern. Most traders who might have come across references to the Gartley pattern will know their close relation to Fibonacci numbers. M Gartley never included the Fibonacci relation in his original work and instead used one-thirds and two-thirds of ratios between the various swing moves.
It was later developed by Scott Carney and Larry Pesavento which is now widely accepted as the standard for trading the many patterns originally discovered by H.
The Gartley patterns became the focus and choice of trading for most traders as it was proven that these patterns have a high success rate. In his book, H.
M Gartley noted that in a 10 year period, the Gartley patterns had a high success rate, 7 out of 10 times. The Gartley pattern comes in a Bullish Gartley and a Bearish Gartley pattern and is made up of 5 pivot or swings points.
The main rules of the Bullish and Bearish Gartley are as follows: Once a position is entered at D, profits can be booked at Therefore, traders need to allow some room with a small margin of error. For example, a Gartley pattern may be valid even though the AB leg might have retraced The following chart gives an example of a Bearish Gartley pattern.
After price reached the point D, we then enter short with stops at D. The first target was As we can see from the above example, the Bearish Gartley pattern managed to reach all the three specified target levels. The following chart shows an example of a Bullish Gartley pattern. A long order would be placed just above the high of the price at D with the targets set to In the above example, we notice how swiftly price rallied from D , the PRZ or the potential reversal zone level and quickly reached all the three profit levels.
As we can see from the above, the Gartley pattern is a very simple and easy to understand Gartley pattern for those who are just getting started with harmonic trading. I know some indicators. How to install Indicators, EA on Mac — http: Improve Your Trading Skills - Don't miss our new posts! Trading Forex, Binary Options - high level of risk.
Please remember these are volatile instruments and there is a high risk of losing your initial investment on each individual transaction. What is the Harmonic Pattern Gartley? AB must retrace Gartley Target Levels Once a position is entered at D, profits can be booked at Here, we notice that AB retraced Thanks for your reply!
Is there a simpler way to be able to identify patterns? Thank you for this article. Psychological Levels in Trading. How to place orders with MT4. Newest Forex EA, Systems.More...