Bearish Gartley
The bearish Gartley is the mirror image. It resembles a deformed letter “W”. The orientation from X to D should be downwards.
Figure 2: Bearish Gartley ©
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The ratios are the same as the bullish pattern. With the bearish Gartley again the critical points to look at are X, A and D. The points B and C should lie somewhere between A and D on the price axis. However if B retraces more than 62% of the move XA the pattern could form a bearish butterfly.
The bearish Gartley predicts a price fall and has a target range that’s below D. The range is between 62% and 127% of the downswing between X and A. This means if X is at 100 and A at 80, the price target after D would be in the range 83.16 to 70.32.
Trading a bearish gartley
To trade a bearish Gartley, first wait for completion at D and look for a confirmation of a downside breakout. Then place a sell order with take profit in the range 62% to 127% of XA. The stop loss can be placed above point X.
If the market rises above X then the safest action is to exit the position and wait for a more suitable entry.
Like the bullish Gartley, another trading strategy is to anticipate the move from C to D and place an order to buy. The take profit is then set at D and the stop loss is set around A.
The other XABCD patterns are the
butterfly, the
bat,
cypher, and the
crab.
https://forexop.com/learning/basics-of-harmonic-chart-patterns/
http://thepatternsite.com/GartleyBear.html
ymmv
