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
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.
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.
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
continuation patterns or even reversal patterns.
The chart below shows how profitable it could be if you trade these patterns.
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.
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.