1 – Gartley model

Elements of the Gartley model:

Point B at 0.618 with (+/- 3% tolerance)
Enter AB=CD – AB=CD – 1.27 AB=CD
Correction D from BC at 1.13-1.618
D correction of XA at ​​0.786
Stop Loss > 1.0 (based on AB = CD)

Gartley model

The Gartley 222 is a very powerful and multidimensional model. It is called Gartley 222 because it is found on page 222 of HM Gartley’s book Profits in the Stock Market, published in 1935. This pattern is simply referred to as “Gartley”. An important feature of the Gartley pattern is the specific location of the various points: X, A, B, C, and D. The XA leg is the largest price movement in the pattern.

This is followed by a countermovement from A to B. The first section from A to B creates the AB = CD potential, which is crucial to complete the pattern and signal the reversal zone. After a brief and minor correction from B to C, the section from C to D is established. An accurate calculation of AB = CD provides an important potential reversal point.

Ideal Gartley The ideal Gartley setup is determined by specific Fibonacci retracements. One of the most important numbers in the pattern is the correction of point D of the XA section at 0.786. Although price action can easily exceed this number, it should not go beyond point X. The pattern is a good setup, especially with AB=CD convergence.

Although Gartley did not discuss specific Fibonacci retracements in his book! It wasn’t until Scott Carney’s book The Harmonic Trader was published. Where specific setbacks are associated:

Explain the elements of the Gartley model

1. Correction of point B of the XA section at 0.618
2. Correction of point C of Section AB at 0.382, 0.5, 0.618, 0.786, 0.886
3. Correction of point D of section XA at ​​0.786
4. 4. Correction of point D of section BC at 1.13, 1.27, 1.618

There are others who have set Fibonacci retracements for this framework. However, they use a variety of Fibonacci numbers at points B and D. Despite these differences, the Fibonacci retracements that give the most reliable reversals are 0.618 at point B and 0.786 at point D

In addition, the pattern should show a clear AB=CD pattern converging in the same area as the correction of point D of the XA section at 0.786 and the correction of point D of the BC section (either 1.27 or 1.618) expect.

The most important aspect of the Gartley model is point correction B from the rib SHAH Which should be at 0.618.

Notes on the Gartley model:

1. Wait for the full PRZ to be tested – specifically the correction of point D of the XA section at 0.786 and AB = CD – before executing the trade.
2. The initial test of model completion should not extend beyond the potential reversal zone (PRZ), ie valid Gartley patterns show critical reversal behavior.
3. Use the area beyond XA 1.0 as a stop loss or breakout measure and lock in the 88.6% level, especially when AB = CD closes at 0.786 after correcting point D of the XA section
4. The price action should reverse immediately after the PRZ is fully tested.
5. Tolerance for retracement of point B of XA Leg max +/-3% (0.618).

Deep Gartley pattern D correction of XA at ​​0.886

Elements of the deep Gartley model:

Point B ratio at 0.618 with (+/- 3% tolerance)
Enter AB=CD – AB=CD
D correction of BC at 1.618-2.618
D correction of XA at ​​0.786-0.886
Stop Loss > 1.0-1.13X (depending on AB = CD)

If the AB=CD pattern extends beyond the 0.786 retracement, (Correction of point D of leg XA at 0.886) Other metrics and larger tolerances must be used to measure real-time action relative to Gartley parameters. In these cases, the correction from point D of the XA leg at 0.886 is called the Deep Gartley for the ideal price level to execute the trade.

Explanation of the elements of the deep Gartley model Deep Gartley

1. Correction of point B of leg XA at 0.618
2. Correction of point C of leg AB if 0.382o 0.5 0.618 , 0.7860.886
3. Correction of point D of leg XA at 0.786 and 0.886
4. Correction of point D of the page B.C if 1,618 2 , 2.24 , 2,618

Lesson 7: Pattern AB=CD نموذج
Lesson 8: The Gartley Model
Lesson 9: Bat Model
Lesson 10: Alternative bat
Lesson 11: The Cancer Model
Lesson 12: Deep Crab
Lesson 13: Butterfly Patterns