"A classic harmonic reversal pattern that identifies high-probability turning zones using price structure and Fibonacci relationships."
Definition
Markets often correct in structured, proportional ways. In a Gartley pattern, price makes an initial impulse (XA), retraces in a controlled manner (AB), corrects again (BC), and then completes a final move (CD) that aligns with key Fibonacci levels. This alignment reflects balance between buyers and sellers. At completion, momentum often weakens, making point D a critical decision zone rather than an automatic entry point.
Simple Explanation
"Ideally, it is a complex pullback that looks like a letter "M" or "W". It uses math ratios to tell you exactly where the pullback should end and the main trend should resume."
Core Message
- Reversals often occur at Fibonacci confluence zones
- Corrections follow proportional, repeatable structures
- The pattern defines a high-probability area, not certainty
- Confirmation is essential before execution
Visual Interpretation
XA Leg (Impulse)
Strong directional move establishing the trend foundation.
AB Leg (Retracement)
Price retraces approx 61.8% of XA. A healthy correction.
BC Leg (Correction)
Price moves in XA direction, retracing 38.2%-88.6% of AB.
CD Leg (Completion)
Final leg completing at 78.6% retracement of XA (The PRZ).
Summary
"Visually, the Gartley pattern looks like a complex zigzag within a trend. The most important aspect is Fibonacci confluence at point D."
Market Psychology
Direction
- The XA leg reflects strong conviction. One side of the market is dominant.
Healthy Pullback
- AB retracement shows profit booking without panic, maintaining structure.
Balance
- During BC, buyers and sellers reassess value, leading to smaller, controlled swings.
Reassessment
- At Point D, participants reassess risk-reward, often leading to a reversal.
Identification Rules
XA
Identify a clear impulse leg.
AB
AB should retrace approx 61.8% of XA.
BC
BC retracement 38.2% to 88.6% of AB.
CD
CD completes near 78.6% retracement of XA.
AB=CD
AB=CD symmetry within the pattern strengthens reliability.
Execution Strategy
Entry Signal
Enter at D (0.786 of XA)
Stop Loss
Stop loss below X
Take Profit
Target 0.382 and 0.618 of AD
Signal Confirmation
Is the PRZ valid?
- Reversal candlestick patterns at PRZ (Point D)
- Momentum divergence near point D
- Volume slowdown or rejection
- Break of short-term structure
Caution: Do not trade just because you drew lines. Wait for the market to respect the lines.
Common Mistakes
Myth: Guaranteed reversal
It defines probability zones, not certainty.
Myth: Works only on high timeframes
It appears across all timeframes with proper structure.
How to Trade: Gartley Pattern
Step-by-step masterclass on trading this pattern profitably.
Quick Facts
Video Coming Soon
Detailed video breakdown is in production.
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Save Gartley Pattern to your personal collection for quick reference.
Advanced Course
Detailed walkthrough coming soon
Essential Reading
