Gartley

Gartley Pattern

The Gartley pattern is a popular chart pattern that has been used in technical analysis since the 1930s. It is a combination of Fibonacci retracement levels and price reversal patterns, and was created by Harold Mc Gee. The Gartley pattern is used by technical analysts to predict or identify potential reversals in the price of a security.

The Gartley pattern is often referred to as a “Gartley 222” because the pattern consists of two Fibonacci retracements, each involving a price reversal from a high point to a low point. The first retracement is drawn from the swing high point to a swing low point. The second retracement is drawn from the new swing low point to a new swing high point. The pattern is completed when the price reverses at the second swing high point and falls to the same point as the original swing low point.

The Gartley pattern is often identified by technical analysts in order to signal potential buying or selling pressure in the market. Traders may enter a long position when the price action breaks and closes above the Gartley’s resistance level, or enter a short position when the price action breaks and closes below the Gartley’s support level.

The Gartley pattern is used in different financial instruments such as stocks, commodities, currencies and other markets. It has been used successfully by traders in all of these markets over many decades, and continues to be one of the most popular technical analysis tools today.

In addition to being used as a forecasting tool, the Gartley pattern can also be used as a leading indicator. It signals to traders when a security or market may be nearing a potential price reversal, allowing them to take action before the market actually turns. While it is not foolproof, the Gartley pattern can be a valuable tool for technical analysts.

The Gartley pattern is a combination of Fibonacci retracements, price reversal patterns, and a specific combination of swing points, making it an extremely powerful tool for technical analysis. While it can provide good indications of potential price reversals, traders should always remember to use other indicators, such as MACD and RSI, in order to confirm any potential buy and sell signals that the Gartley pattern may generate.

Gartley pattern is one of the most popular chart patterns used in technical analysis for trading the financial markets. This pattern is the favorite among traders who specialize in trading based on technical analysis of price movements.The Gartley pattern was first introduced by H.M. Gartley in his 1932 book, Profits in the Stock Market. The pattern is named after him and is also referred to as the Gartley 222 pattern because of its shape which roughly resembles the letter G and its three points, marked as X, A and B (which each have an associated price level).

It represents a corrective wave form which looks like a W reversed and is usually used to identify a possible retracement of the current trend. The pattern consists of five points, labeled X, A, B, C and D. X marks the starting point of the pattern and A, B, C and D mark the points where corrective waves take place. X is usually a bottom or a top and A, B and C are the retracement points. Point D marks the completion of the pattern, forming a G shape.

The pattern itself shows that price has been retracing in the current trend and is likely to continue moving in the original direction. As such, traders may use it to signal a possible trend reversal if the pattern is observed in the price chart. Traders may also use it to enter a new position when the price moves in the original direction after the completion of the pattern.

In conclusion, traders should take into consideration various factors when analyzing the Gartley pattern. These may include the depth of the retracement points and the speed of price movement. This pattern may be applied to all markets, though it is most frequently used in the Forex market.