1st April 19: USD/CAD ADVANCED GARTLEY OR “THE GARTLEY 222” TRADE SET UP
Here we have a nice opportunity to trade the famous “gartley 222”.
This is the “advanced or more complicated version of the gartley” that you find everywhere. Yet still, the way I “interpret and trade” this set up is the simplest possible way.
Simply put, The Gartley 222 is this:
It is the intersection or convergence of a Fibonacci Retracement and a Fibonacci Extension. Simple!
We can see this simpler interpretation in my attached trade set up for the USD/CAD cross.
The Gartley 222 is Point “C” the Retracement Fib of the Upswing (blue) which is also Point “D” the Extension Fib of the Downswing (pink)
In this case we have Point C = 78.6% retracement or Point D =127% Extension
But please do not get confused with my current “Short Trade” as shown by the yellow down arrow. I “foresaw” the possibility of this Gartley 222 to be formed when the USD/CAD “stall” at the 78.6 during this second short. I had already entered at the 78.6% a few days earlier with no other reason than “I feel it might turn here at the 78.6%!” but last night, after I measured the smaller down swing (in smaller time frames) I saw that its extension would end up at the “Gartley 222 point”
The way to actually trade The Gartley 222 in the above example is to BUY at the INTERSECTION POINT (78.6% + 127%).
SO THE TRADE SET UP FOR THE ABOVE IS: BUY AT THE GREEN CIRCLE (INTERSECTION 78.6%+127%) WITH TARGET AT THE 127% EXTENSION OF THE UPSWING (ALSO MARKED IN GREEN CIRCLE)
If you have any questions let me know…
Unfortunately I don’t have youtube or any way of uploading videos so it makes it harder to clearly explain these concepts
2nd April 2019: USD/CAD SHORT TRADE at PROFITS
This trade is now at profits, I am using the Cancel & Replace Stop Trailing approach