Nice looking pattern, the only thing I would say is that your CD leg can be more accurately drawn using the fib lvl of AB. Basically draw fib tool from AB and move it across to C. If you do this then you’ll find decent convergence at 100% and 61.8, rather than hovering between XA fib lvls
Thanks. I would be happy to explain how I trade these setups. Really you can use whatever fib confluence you want in a Gartley because Gartley himself didn’t assign fibs to the levels. I don’t require the AB leg to reach any certain level. It just has to form a swing high or low at B which is less than the 78.6% XA retracement. I like to use the first one that forms if I can. If it is a bearish gartley for example B would be the first swing high after A. Then I run the fib extension from A to B to C. This gives you the projection of the CD leg. It is equivalent to running the fib retracement tool from A to B and then moving it to C. So the 100% would be a 1 to 1 measured move. Then I look for a confluence with either the 78.6% or the 88.6% X to A retracement. It doesn’t have to be the 100% either. It can be any of the fib levels I mentioned at the beginning of this thread. I don’t worry about how far the C pulls back either. It just has to be a swing low in the bearish example and it can’t violate A. I know it get’s a little confusing with so many different ways people trade the patterns. Hope this helps.
With this pattern I would be looking for the 127 expansion level to be real close to the 786.
After pulling up the chart I can see it would be a good setup. I’ll definitely be keeping an eye on it.
Thanks.
Thanks for your response. Its amazing how these structures are everywhere both failed and intact. Hope you don’t mind if i throw a few more questions at you. Since you’ve traded these for a while, have you notice if the point where the BC Leg terminates can give you a stronger or weaker pattern? For instance does the .5 area give off better signals since price has less area to cover before it gets to your area of interest as apposed to say the 0.886? Are you always looking for a retracement of .5 to .886 from the AB Leg to where the C Leg terminates or do you treat it more as art and just look to see if it makes sense to you?
Also i believe you said in the beginning of your log that you use target a 1:1 RR. So you just set a limit order in the most likely target area, place your stop above X, and then use that number as your target?
I don’t mind the questions at all. I think even the slightest pullback from the AB leg will work. All I look for is a solid recognizable swing low or high. For me a swing high has to have 2 candles on each side with lower highs. That’s really all I need.
Here’s how I place my trade when I find a setup. In this example the 127 expansion is close to the 786 XA retracement. I place an order to go long at the 786. Since this is the bid price I have to add the spread. I place my stop just below the bid price at X (within a pip). I measure this distance in pips and use the same amount of pips for my target.
I like how you’ve made it purely mechanical. So you need no entry signal other than price meeting your target. Its hard to see your chart but it looks like you placed your limit order at 118.60, the confluence of 0.786 of XA and the overlayed fib extension of 1.272 from the start of the C Leg, which would be a PT and ST of 17 pips? Looks like a perfect touch on both ends before you would have been stopped out. Nice trade!
Yes, exactly! I like to be as mechanical as possible. It relieves a lot of the stress. I also prefer to keep it as simple as I can so I can do my analysis quickly since I have other work to get to. I can set up my trades quickly and let them play out without watching them.
Thank you!
I had the same pattern and just won my 15 pips :), nice spike in the market haha. Incidently its now going south fastt, wonder how much you took on it?
Congrats! I took 34 pips. I had a stop just above X so 34 was my minimum for a 1;1.
Are you trading for real, or demo? And how much are you valuing 1 pip? I tend to go 1 pound per pip
I trade real money but it’s not a certain amount per pip. I risk about 2% on each trade so a 20 pip trade and a 100 pip trade pay about the same. There’s times when I make money even though my pips are in the red or the other way around.
