Any saved Gartley pattern can be reloaded from " Harmonic Patterns " history tool back into this tool. Swing rates that define a path for the pattern are entered manually , a method that might not appeal to many forex traders who want a ready to trade pattern.

However, the advantages gained by using this method of rates input can't be acquired using any different way. The ability to validate all harmonic patterns simultaneously using a single path, getting proactive possible rates for the next point or PRZ , knowing the exact precision of each point, the ability to test expected rates to see if the pattern is worth keeping an eye on.

Those are a few advantages gained as a result of using that input method. This is where the rates for the path is entered to be validated against Gartley pattern conditions, below is an explanation for the 3 inputs controlling the path. This choice will determine the pip's decimal and fractional decimal to be used for calculations.

Can be chosen from any of the 6 custom currency presets. This setting sets the "quality" of the pattern by limiting a point to be marked valid only if its deviation is less than or equal the defined deviation value, which can be set to any number between 0.

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Deviation is applied smartly to each point with respect to the swing originating the Fibonacci relation. The 5-points path rates creating the pattern are entered here sequentially. The buttons below can help with understanding what the tool does at each phase of the pattern, while the rest of this section will be a demonstration for the actual progression of Gartley pattern that was traded on checkpoint 3. When only X and A rates are entered, both rates will be validated for errors only as there are no pattern conditions at this point.

If no errors found, the tool will be in " Proactive B " status, providing the proactive ideal rate and acceptable range for When X, A and B rates are entered, B will be validated according to the pattern conditions for that point. If B is found valid, the tool will be in " Proactive C " status, providing proactive ideal rates and acceptable ranges for When X, A, B and C rates are entered, C will be validated according to the pattern conditions for that point.

Whether the pattern is found valid or not, it can be saved or traded at this phase as per your preference. In a Harmonic Gartley pattern, point B can only be a For this point, deviation entered in the path setup will be calculated with respect to XA swing.

Point B can either be in proactive or validation status, both explained below using the example Gartley pattern. The ideal rate for point B will be generated, and the acceptable range around it with respect to the deviation value entered in the path setup.

Obviously, AB swing is never traded, but knowing the possible range for point B in advance provides the ability to observe the price action around it and watch the pattern evolve from its very first phase. Validation will take place according to the validation method chosen in the pattern settings, and deviation value entered in the path setup.

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Precision of point B is calculated with respect to the ideal rate of If point B is found valid, the pattern progression will continue to the next phase "Proactive C", otherwise the pattern will be marked as invalid in the watch window. In a Harmonic Gartley pattern, point C can be a For this point, deviation entered in the path setup will be calculated with respect to AB swing. There are two validation methods available for this point, either "Fibonacci levels only" or "Whole Fibonacci range" , more on that in the settings section below.

Point C can either be in proactive or validation status, both explained below using the example Gartley pattern.

The Gartley and Butterfly Harmonic Patterns

The Bat is defined by the. The Bat pattern has the following qualities:. Then, there is the Butterfly pattern. Created by Bryce Gilmore, the perfect Butterfly pattern is defined by the. Summer School. Trading The Gartley Pattern.

He had a stock market advisory service in the mids with a huge following. Gartley a. Move BC should be either. If the retracement of move BC is.

Consquently, if move BC is. Remember that all subsequent harmonic patterns are based on the ABCD pattern and contain it within them. Therefore there is no need to repeat them here and we will just describe how to identify the patterns on the chart. The specific retracement level of the first XA leg in these patterns strengthens the original harmonic reversal zone of the ABCD pattern and with that strengthens the case for an actual reversal to happen later. The Gartley is probably the oldest and best-known of the harmonic patterns.

In fact, it was discovered about years ago and it was used even before harmonic Fibonacci ratios were applied to financial markets, though lacking the precision we have today owing to the clearly defined Fibonacci relationships in the pattern. However, that is not necessary the case and if the Fibonacci ratios are properly aligned the pattern is still valid regardless of where it appears. The AB leg can not surpass point X.

The BC leg can not surpass point A.