How to Trade when you see the Gartley Pattern?
What to consider to enter the trade?
To enter a Gartley trade you should first take note of the pattern and then confirm if it is valid or not. Outline the four price swings on the chart and check to make sure they respond to their respective Fibonacci levels to draw the Gartley pattern on your chart. Ensure you mark every price action swing with the important letters X, A, B, C, and D. By doing this, you will be able to estimate the overall size of the pattern and get a clear idea about the parameters.
If your chat is a bullish Gartley, open a long trade after noticing these conditions:
CD gets support at 127.2 percent or 161.8 percent Fibonacci level of the BC move.
The price action bounces in a bullish direction from the respective Fibonacci level.
If the Gartley pattern is bearish, then you make use of the same two rules to open a trade. But in this case, your trade will to the short side.
Where to set your stop-loss for a Gartley trade?
It is always recommended that you use a stop loss order regardless of your preferred entry signal. By doing this, you will be protecting yourself from any rapid or unexpected price moves. The stop loss order of a bullish Gartley trade should be found below the D point of the chart pattern. But for a bearish Gartley trade, your stop loss order should be found above the pattern’s D point.
What to aim for your take profit for a Gartley trade?
When you open your Gartley trade and you place your stop loss order, you expect the price to move in your favor, right? And if and when it does, you should know how long you expect to stay in the trade.
It is advisable to enter a full position after the D bounce and then scale out at different levels when trading a Gartley harmonic pattern. If the price momentum continues to show signs of strength, you can opt to keep a small portion of the trade open so as you can catch a large move. Use price action clues such as trend lines, support and resistant techniques, candle patterns and trend lines to find the right final exit point. But generally, if the price action shows no signs of interrupting the new trend, just stay in it for as long as you can.
What to consider to enter the trade?
To enter a Gartley trade you should first take note of the pattern and then confirm if it is valid or not. Outline the four price swings on the chart and check to make sure they respond to their respective Fibonacci levels to draw the Gartley pattern on your chart. Ensure you mark every price action swing with the important letters X, A, B, C, and D. By doing this, you will be able to estimate the overall size of the pattern and get a clear idea about the parameters.
If your chat is a bullish Gartley, open a long trade after noticing these conditions:
CD gets support at 127.2 percent or 161.8 percent Fibonacci level of the BC move.
The price action bounces in a bullish direction from the respective Fibonacci level.
If the Gartley pattern is bearish, then you make use of the same two rules to open a trade. But in this case, your trade will to the short side.
Where to set your stop-loss for a Gartley trade?
It is always recommended that you use a stop loss order regardless of your preferred entry signal. By doing this, you will be protecting yourself from any rapid or unexpected price moves. The stop loss order of a bullish Gartley trade should be found below the D point of the chart pattern. But for a bearish Gartley trade, your stop loss order should be found above the pattern’s D point.
What to aim for your take profit for a Gartley trade?
When you open your Gartley trade and you place your stop loss order, you expect the price to move in your favor, right? And if and when it does, you should know how long you expect to stay in the trade.
It is advisable to enter a full position after the D bounce and then scale out at different levels when trading a Gartley harmonic pattern. If the price momentum continues to show signs of strength, you can opt to keep a small portion of the trade open so as you can catch a large move. Use price action clues such as trend lines, support and resistant techniques, candle patterns and trend lines to find the right final exit point. But generally, if the price action shows no signs of interrupting the new trend, just stay in it for as long as you can.
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