The bullish Gartley pattern resembles a W that has been turned upside down. A correctly traced pattern should be able to show an XABCD pattern as shown above. The pattern is traced as follows:<\/span><\/p>\n It starts with a bullish move from point X to a point A, <\/span><\/p>\n<\/li>\n There is a short retracement from point A to point B<\/span><\/p>\n<\/li>\n The uptrend resumes again to point C. Point C is not usually on the same level as point A).<\/span><\/p>\n<\/li>\n There is a downward move from point C to point D. This completes the bullish Gartley.<\/span><\/p>\n<\/li>\n<\/ul>\n If a trader can correctly trace the bullish Gartley pattern on the charts, he can cash in on the full reversal that is sure to occur. <\/span><\/p>\n Rules for Identifying the Bullish Gartley Pattern<\/strong><\/span><\/p>\n There are rules that must be followed in order to identify a true bullish Gartley pattern, as it is very easy to get caught out by many fake outs or fake patterns that resemble a bullish Gartley but which are really not a true bullish Gartley pattern.<\/span><\/p>\n The price move that is represented by the AB line must be a 61.8% retracement of the price movement represented by the XA line. The dotted line XB should therefore show the 61.8% reading (please refer to the diagram above). <\/span><\/p>\n<\/li>\n The next move following AB is the resumption of the uptrend. This is represented by the line BC. The BC price movement should be an upward retracement of between 61.8% and 78.6% from the price movement AB. In other words, point C must be below point A on a horizontal plane. If point C is at the same horizontal plane as point A or even above point A, the chart pattern rule for the bullish Gartley is invalidated.<\/span><\/p>\n<\/li>\n Next in line is the downward price retracement from point C, represented by the line CD. CD must be 127% to 161.8% retracement from line BC. It is only when the rules above have been clearly obeyed that a true bullish Gartley pattern has formed and we can truly say that the trader has a (Bullish Traders should be very alert to pattern failures. It is best to practice the identification of this pattern on a demo account before attempting it There is a customized indicator which can be used to identify the bullish Gartley pattern when it occurs. This can be obtained on request from\n
\n
\nThis means that point D MUST be below point B, but remain above or at the same horizontal plane as point X. <\/span><\/p>\n<\/li>\n<\/ol>\n
\ngood basis for going long at point D.<\/span><\/p>\n![\"\"](\"http:\/\/i.imgur.com\/kqJiY.gif\")
\n<\/span><\/p>\n
\nGartley on a Gold daily chart)<\/strong><\/span><\/p>\n
\non a live account. <\/span><\/p>\n
\nthe vendor.
\n<\/span><\/p>\n