Bearish Gartley (Daily)
The Gartley Pattern , is a harmonic pattern discovered by H M Gartley and outlined in his book 'Profits in the Stock market', published in 1935.
The pattern was further defined using specific Fibonacci levels by Scott Carney which he outlined in his book 'The Harmonic Trader', published in 1998.
The pattern incorporates the 78.6% retracement of XA, as the defining element in the Potential Reversal Zone (PRZ).
The B point must be at the 61.8% retracement of XA. The Gartley utilizes a minimum 127.2% projection of BC .
In addition, the pattern should possess a distinct AB=CD pattern that converges in the same area as the 78.6% retracement of XA and the BC projection.
This is the first of two potential Harmonic patterns on the Daily time frame signalling the continuation of the current bearish retracement on EUR/USD.
ENTRY = 1.18163
STOP = 1.18719
TP1 = 1.17383
The pattern was further defined using specific Fibonacci levels by Scott Carney which he outlined in his book 'The Harmonic Trader', published in 1998.
The pattern incorporates the 78.6% retracement of XA, as the defining element in the Potential Reversal Zone (PRZ).
The B point must be at the 61.8% retracement of XA. The Gartley utilizes a minimum 127.2% projection of BC .
In addition, the pattern should possess a distinct AB=CD pattern that converges in the same area as the 78.6% retracement of XA and the BC projection.
This is the first of two potential Harmonic patterns on the Daily time frame signalling the continuation of the current bearish retracement on EUR/USD.
ENTRY = 1.18163
STOP = 1.18719
TP1 = 1.17383
Note
TP2 = 1.16901Note
To be valid, all Harmonic patterns I use must contain an ABCD structure. I do not trade the ABCD pattern but use it simply as confluence for the overall Harmonic structure.
The type of ABCD pattern varies for each Harmonic structure, it can be identified by measuring the AB leg (which must retrace at least 38.2% to form point C) then extending this measurement from point C to identify point D.
Note
Although the ABCD structure will often align with several of the structural points of the overall Harmonic pattern, it should be treated independently and not confused with the AB and CD legs of the Overall pattern ... Note
As price broke above entry before completing the symmetrical ABCD we can assume the ABCD1.27 is the correct structure. As mentioned before I do not trade and would not advise trading these ABCD structures, they are used purely as confluence/validation for the overall Harmonic pattern ... Note
The Bearish ABCD1.27 Pattern has completed after hitting both TP1 (38.2% of AD) and TP2 (61.8% of AD) I would now expect the continuation upwards towards the entry of the Bearish Gartley Pattern.Note
TP1 hit, 50% of position closed.Note
TP2 Hit, 50% of remaining Short position closed.Note
Due to the development of the following Bearish Shark pattern, I will be closing the remaining 25% of the Short position for this Gartley at the Shark patterns' initial target ... 
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.