Dear my Dukascopy community readers.

Today we are going to learn how to trade in Harmonic Pattern Gartley. First of all, I want to give you brief information about Harmonic Pattern history. Most of Forex, Stock, and Cryptocurrencies traders use harmonic pattern trading method at the advanced trading. Scott Carney President and Founder of HarmonicTrader.com has defined a system of price pattern recognition and Fibonacci measurement techniques. He gave the name and determined harmonic patterns such as the Bat pattern, the Gartley pattern and the Crab pattern.

This article, which I wrote for you provide my own look on harmonic trading. The most famous formation among the Harmonic Patterns known as Gartley. Let us say how to draw formation. When we draw the formation like as below, this is the gartley formation. One of the most important note is that XA must be a impluse. Gartley can be seen in a uptrend or in a downtrend. In this formation the impluse begins then correction again impluse begins. We will use X A B C D letters in Gartley pattern

Our first movement should be impluse in uptrend or in downtrend. Name is this movement is XA. First rule is that XA must be impluse. After that when the impulse finished correction begins. When correction starts, we draw Fibonacci retracement from X to A. The correction candle or candlewick should touch to Fibonacci retracement 61.8 but candlewick cannot pass the X point. This move is called B. Dear my friend what was the rule first? XA must be impulse do not forget this rule when you see movement on chart. Then the candles must be move up and we are waiting for to create C point. Rule of the move C is we draw from A to B Fibonacci retracement. C must touch to Fibonacci retracement 61.8 but do not touch A. The wick or the candle body never pass one pip to move A. After this we again draw, Fibonacci retracement from A to B. 127.2 extension is our D point. Creation Gartley candle must reach to D point. You can not think of opening an operation is price move from B to C or from C to D. You need to wait C point must reached to D point. The action is completed when the action reaches D and we can open trade now.

What we do know? ))))) We can recognize our stop loss and Take profits. Now we draw Fibonacci retracement from A to D. Stop loss is 27.2 extension, TP1 38.2 retracement and TP2 61.8 retracement.

Bullish and Bearish Gartley rules

1. move XA must be impulse
2. B = We draw Fibonacci retracement from X to A. B point must touch Ret 61.8 don’t touch 78.6
3. C = Draw Fibo ret from A to B. C point must touch to 61.8 don’t touch to point A
4. D = Fibo ret from A to B. D point must touch 127.2 extension.
5. Stop Loss 27.2 extension, TP1 38.2 retracement and TP2 61.8

NOTE: To find Gartley formation in chart you must to look at in a bullish trend W or in a bearish trend M. It seems when the price has been moving in an uptrend or downtrend.

NOTE 2: I recommended you to use this formation in M15, H1, H4, and D1. If you want to gain money on Forex, you must be patience and use 2% your deposit. Open one trade a day.
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