The Gartly Pattern

The Gartley pattern was outlined by H.M. Gartley in his book Profits in the Stock Market, published in 1935.

On page 222 of the book, Gartley describes a pattern that is a “re-test” of a top or bottom. This pattern prevents a trader from guessing a high or low since the “222” is a re-test of a previous high or low.

This is the main advantage of this pattern, as it leaves little to guesswork and relies only on specific Fibonacci numbers.

I t shows a series of price reversals and the retracement percentages that establish an ideal pattern. Although the pattern is named "The Gartley," the book did not discuss specific Fibonacci retracements!

The Gartly Pattern get traded as following.

- Look for a pattern of retractment of 61% of X-A
- Look for a retracment from point B to C of 78 - 88%
- Then look fo r apoint D of 78 % of XA a a puulback from B-C
- Enter the trade when the hight of the reversal bar on D is broken.

First target should be 121% of C-D
Second target is 121 % of X-A
Stopp loss should be put just below X