Here is a chart of a trade I took a couple of weeks ago. They all don't work out like this but the Reward/Risk ratio on these patterns in high, usually around a 3:1 at least. As you can see the buy point was D and notice how it stopped and reversed on a dime at the confluence points. Most people would not have bought into those big fat red ugly down candles.
I dont see a Gartley there you mind explaining more about that trade?
does anyone trade this system exclusively or the gartley?
is the gartley composed of fib levels? and if so, how do you calculate them? i dont getll all the .79 and .38(i know they are fib levels) but how do they form a gartley?
I do trade Gartley's and yes the gartley is composed of fib/ levels. I'm gonna attached a picture of previous trade.
Say the long term trend is down, insert your A,B, spread across the high and low of that A,B. IF the distance between A,B is 180 pips then a possible retracement would be around 60-120 pips(just for argument sake). Lets say the market retrace 60 pips (insert a,b or 1,2) then pull back to 30(c or 3), what you'll now do is spread fibs across a,b or 1,2. If the pull back(30 pips) is at a .382,.50 or .618 a possible extension would be 161.8. If it is at .786 then a possible extension would be 127.
If a fib retracement(.382,.618,50,.786) from the first A,B coincides(lines on top of each other or close to each other) with an extension from the second a,b or 1,2 , at that point you'll have a possible C or d/4. Thats a Gartley. What you would do is sell at C or d/4, preferbly at a reversal candle formation. The C or d/4 normally forms at a trendline. See pic below. 1st pic is a Gartly, other two are similar A,B,C,Ds trades, they are NOT "wolfwave" system.