Gartley Pattern — Trade What You See

Gartley Pattern is a little known pattern, but trading can be very profitable if you can spot these patterns.

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H.M Gartley made a few discoveries on trading in the 1930s, especially a pattern that repeats itself near the top and bottom of trend, known as Gartley 222 Pattern from page 222 of the book Profits in the Stock Market/with Charts .

You can combine certain fibonacci retracements levels in the analysis with these patterns to help you to identify potential turning points.

The diagrams below show the patterns with ideal fibonacci ratio.

source: HarmonicTrader.com

This is a bearish pattern. It implies price will fall from point D. If you act quick enough, you can make a quick profit in a few days, weeks, months or even minutes, for this pattern.

source: HarmonicTrader.com

This is a bullish wave pattern, or part of reversal chart patterns which means the price will shoot up from point D.

I have heard of these wave patterns before, but never took any notes until I see them appearing every now and then near the top of trend, in the middle of retracement or small bounce including intraday, even on a 5 minutes chart.

You can consider these patterns as part of Elliott Wave, continuation patterns or even reversal patterns.

The chart below shows how profitable it could be if you trade these patterns.

Recommended Softwave

I came across this Wave59 software that can find wave patterns such as Gartley Patterns, ABCD, Head And Shoulder. You can build your own indicators as well as using their revolutionary indicators.

In fact you can use this software to trade using most of the techniques and strategies covered on this website especially the swing trading stock prediction technique page.

The above is a snap shot of Wave 59 website which shows you can draw the time and price of ABCD pattern or I call it swing 1. retracemnet swing 2 and then swing 3 and the software will then find this pattern for you.

You can also change this to draw XABCD and let the software find the gartley pattern on the chart, or you can pick Gartley and other chart patterns from the drop down menu within the software filter and trade accordingly.

In fact watch this video from Wave 59 that explains how to build price and time rules patterns as well as to see what’s already been programmed into the pattern filter.

This software also works on end of day data as well as real time data.

Click here for your wave 59 software

Recommended Books

If you want to learn more on how to trade Gartley and other patterns, then try this book written by Larry Pesavento

Trade What You See: How to Profit from Pattern Recognition (Wiley Trading)

Chapter 5 and 6 go into great details on trading these Gartley and other Patterns.Click on above link for books in United Kingdom. Click on below link for books in United State