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| Courtesy of TradingView.com |
DEFINITION of 'Gartley Pattern'
In
technical analysis, it is a complex price pattern based on Fibonacci numbers/ratios. It is used to determine buy and
sell signals by measuring price retracements of a stock's up and down movement in stock price.
BREAKING DOWN 'Gartley Pattern'
The above Gartley example shows an
uptrend XA with a price reversal at A. Using Fibonacci ratios, the
retracement
AB should be 61.8% of the price range A minus X, as shown by line XB.
At B, the price reverses again. Ideally, retracement BC should be
between 61.8% and 78.6% of the AB price range, not the length of the
lines, and is shown along the line AC. At C, the price again reverses
with retracement CD between 127% and 161.8% of the range BC and is shown
along the line BD. Price D is the point to buy/sell (bullish/bearish
Gartley pattern) as the price is about to increase/decrease.
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This
has been posted for Educational Purposes Only. Do your own work and
consult with Professionals before making any investment decisions.
Past performance is not indicative of future results
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