At point B, the price again makes a smaller impulse opposite to that of A. Ideally, the retracement BC should be between 61.8% and 78.6% of the AB price range, regardless of the the length of the lines. This percentage is shown by segment AC. At C, the price again makes a reversal impulse opposite to that of B. In this pattern, again as stated by Fibonacci ratios, the retracement CD should be between 127% and 161.8% of the range BC, and this proportion is shown along the line BD.
Gartley Metatrader Indicator
Price D is the optimal point for buying or selling. At entry D the target retracement to a higher price is initially 61.8% of the range of segment CD. The movement from point D to its next point is extremely profitable. Moves from point D are very quick and powerful, and they follow this model accurately 60% or more of the time.
Here are the key points to remember for Gartleys:
Ideally, AB equals CD in time length.
Point D is a 62-72% pullback from XA.
XD should ideally be 78.6% of the segment range XA.
Ideally CD equals AB.
Take action at point D.
The condition in which these patterns can be found depends on whether they are bullish or bearish:
Bullish Gartleys occur in uptrends.
Bearish Gartleys occur in downtrends.
Figure 6 demonstrates the bullish Gartley at work. And Figure 7 shows the bearish Gartley:
Both of these channeling techniques provide traders with a reliable way to locate breakout points and determine their scope. When using these patterns in conjunction with basic channeling rules, traders have access to a reliable and extremely versatile trading system to use in any market conditions.