5 Steps to trading the Gartley pattern

STAGE 1:

THE BULLISH IMPULSE LEG

A bullish impulse leg is a strong move in price action to the upside.

The impulse leg can be a mixture of bullish and bearish candles, but must have a bullish overall direction.

The start of the impulse leg should be marked as X and the top of the impulse leg should be marked as A.

STAGE 2:

B LEG RETRACEMENT

Now that you have identified your X to A impulse leg you are now looking for the B leg, which is a retracement of the X to A impulse leg.

Take your Fibonacci retracement tool and draw from your X leg to your A leg.

The crucial Fibonacci levels you are looking for are the 61.80% and 78.60%

Price action must at least touch the 61.80% retracement but cannot touch the 78.60% retracement.

As you can see by the illustration, the candle does not need to close below the 61.80% retracement but must at least spike through.

The bullish Gartley pattern will be invalid if price action touches the 78.60% retracement of the X to A move.

STAGE 3:

C LEG RETRACEMENT

Once you have identified a valid X to A impulse leg and a B leg retracement, you are now looking for a valid C leg retracement.

Take your Fibonacci retracement tool and draw from your A leg to your B leg.

The crucial Fibonacci retracement level you are looking for is the 61.80%

Price action must at least touch the 61.80% but cannot spike above the A leg resistance.

The candle does not need to close above the 61.80% but must at least spike through.

The bullish Gartley pattern will be invalid if price action spiked above the A leg resistance.