Is this a Gartley?

T

TraderGreg

New to the pattern. I think I found one here on the EUR/JPY 5 min chart. The left top is indeed the ultimate high, located at a spike.

Thanks,

Greg


<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2192096 width=800>
click on attachment to enlarge image
 

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It could be although that one is not 100% clear as it looks like there was two spikes where D should be. I always look for a impulse which is X-A leg. After there is a true X-A impulse then B-C and D should follow. D should end at the .786 of X-A and also D should be close to the 1.270 of A-B giving you a cluster of price inside the pattern. The cluster of price is the most important part of the pattern. If you sell D there are two targets. The first being the trend line low of A-C then the extended targets being the 1.270 and the 1.618 off the X-A leg. It is best if the pop to D throws off a negative divergence then enter off of a doji with a bear engulf or whatever you use for your entry. Hope this chart helps.

TraderGirl989


<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2199030 width=800>
 

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Ok new question (and this is a good one).

Ok, I have a 1 hr chart of the Euro-Pound attached. Bat specifications (according to Suri Duddella's book):

AB= 0.5 XA ... Check
AB=CD ... couldn't have made that up any better
AD=.886 XA - no, actually .786

Gartley Specs:

AB = 0.618 XA (but he actually says it can be .382-.886 in the same chart, see next post) - retrace in chart is 0.5

AB=CD
AD=.786 XA - hmmm (doesn't quite match up perfectly, but from the hourly closes rather than the wicks it does)

Ok questions:

Does/can the Gartley rule extend to include formations with a 0.5 initial retracement of XA?

Since the formula has to be morphed to the hourly closes instead of the wicks, is the pattern still valid?

Since PA meanders a bit during CD (has a few corrections), does this discount CD and therefore nullify the gartley/bat pattern?

If you can see from the trendlines drawn (the ones in the up wedge), you will see it as a wolf wave (see next posts). Since the pattern does not match exactly with the Gartley/bat, do you instead play the wolf wave?

The end result -- closes the week and shows reversal sign (see TOS chart -- the black one) both at the 1.272 AND wolf wave indicated points (if TL drawn in closes). Does this change any analysis of the pattern, thus confirming both???

Thanks for the help, and see the charts in the next posts! Interesting stuff!
 

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And there's the perfect 1.272. Ignore the rest of the retracements, TOS puts them so that they would be an extension off of a reverse of XA (as in I have to draw bottom to top in order to show downward extension here), not sure why.
 

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Reading a message from another trader just answered that the .50 retrace of XA does still count as a Gartley.

So is it just the .50 and .618, and also does it still work with the pattern completing at .786 (give or take...)? The other questions are still valid as well. Very intriguing situation if you ask me, the kind of reason why I like charts so much.
 
The wick at D is up to the 1.382 while the closes are right at the 1.272 (Gartley projections according to another one of my references).

The final down move ends at the 1.618 of AB (in addition to 1.272 of XA)

That is my last comment, otherwise I'd be analyzing this and going nowhere all night lol
 
Hi Greg,

Here is the chart on DRYS i was talking about. Not sure there are allot of questions on the last couple of post so i might not answer them all but, this DRYS chart makes it clearer for me anyways without so many fib numbers. the clusters i was talking about are seen with this chart. See how the .886 did not have a cluster while the .786 and .618 did. So the clusters are more important in my view. If there are too many fib numbers it will confuse me , so i stick to the 1.270 - 1.618 for the extensions and then the .50 - .618 .786 for the retrace numbers. Having a upper fib target land of a fib resistance of another move (within the same pattern) gives higher chance the price will turn at the cluster number. This is saying you are looking for a place to short (which would be D).

Hope it helps.

TG


<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2200378 width=800>
click on attachment to enlarge image


P.s See how B only went to the 50%, when that happens the odds are higher it goes up and makes D (at least the way i trade it:cool:
 

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Here is another gartley with AAPL. this is a counter trend Gartley at the top of the move. So usually the gartley appears at the extreme top of bottom (sometimes in the middle of the move) but on this example the X-A was not a true impulse meaning: the bigger move is still up but this is a Gartley re trace.

Short D with a stop above X.

Hope it helps.

TG
 

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Wow! I am surprised how compact that is. A thru D in 15 minutes...

If you took the trade do you mind sharing your targets and exits?

Very helpful stuff, TG. Thanks.
 
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