The Gartley Pattern - Truth or Fiction? | Forex Factory

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The Gartley Pattern - Truth or Fiction?

  • Poll

  • Have you had positive experience with the Gartley pattern?
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  • #1
  • First Post: Jun 4, 2010 10:19pm Jun 4, 2010 10:19pm
Many of you are probably familiar with the Gartley pattern; an extension of the Elliot Wave principal that conforms to the Fibonacci sequence. It looks like this:
http://furlender.com/forex/gartley1.gif.
If you are not familiar with it, look it up on google. There is plenty of information about it.

Supposedly this pattern predicts price direction with an astounding 70% accuracy. Recently however, I have been experimenting with a Gartley EA based on the ZUP86 indicator and the results have been... less than impressive.

Unfortunately I cannot post this EA because it is from the paid section of a private forum, but the indicator is free and is linked from forex-tsd.

So tell me, what do you guys think? Is it all hocus pocus and pretty lines, or is there something to it?

This appeared on the M30 EURUSD a few hours ago. Its situations like this that make me feel like this is worth investigating further:
http://furlender.com/forex/gartley2.gif
  • #2
  • Jun 4, 2010 11:44pm Jun 4, 2010 11:44pm
Personaly I don't use them, they look and feel too "esoteric" to me, but I've noticed them sometimes, unfortunately only after the possible trade occurred.
I would like to learn more about them, it was a nice idea this thread and I hope some "Gartley dudes" join you here.
  • #3
  • Jun 5, 2010 12:04am Jun 5, 2010 12:04am
Quoting Orcinus
but I've noticed them sometimes, unfortunately only after the possible trade occurred.
Get indicator to notice and draw them on your chart, then you don't miss them. There are good ones around, even here in FF, search will probably help.

I've traded them, but only on H4, sometimes they work, sometimes they don't -as all other patterns and indicators.
Maybe I didn't get to know them well enough, not my cup of tea, just didn't feel like it.
  • #4
  • Jun 6, 2010 12:32am Jun 6, 2010 12:32am
Quoting Swamp Owl
Get indicator to notice and draw them on your chart, then you don't miss them. There are good ones around, even here in FF, search will probably help.

I've traded them, but only on H4, sometimes they work, sometimes they don't -as all other patterns and indicators.
Maybe I didn't get to know them well enough, not my cup of tea, just didn't feel like it.

Nah... I don't like them, although I used some wolf patterns a while ago, sometimes they work, sometimes they don't... Like everything else in this business.
  • #5
  • Edited 1:50am Jun 6, 2010 1:33am | Edited 1:50am
Dear

Gartley pattern consider strong when it's trading with trend before i was like you used indicator and you will tack position after price reach D right

so why you do not tack position from C to D or from b to D


see example down

in 3rd June Gartley pattern start forming and i short Eurusd from c my target D

same in AudUSD from C to D

this pic from my blog
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GREENIUS
  • #6
  • Edited 4:19am Jun 6, 2010 1:49am | Edited 4:19am
Now see the results

from EU 4 lots = 80+148+175+209=612
from AU 3 lot = 20+58+176 =254

If any of Gartley or any harmonic pattern have been found against trend it's risky try to be with trend most of time


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GREENIUS
  • #7
  • Jun 6, 2010 2:10am Jun 6, 2010 2:10am
And it worked out quite well! Nice call on that one Greenius! Great trade there!
I almost did the same trade using a different approach.
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  • #8
  • Jun 6, 2010 2:19am Jun 6, 2010 2:19am
this may way

Gartley , Butterfly and ab=cd there are the most powerful tools in Forex market
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GREENIUS
  • #9
  • Jun 6, 2010 2:21am Jun 6, 2010 2:21am
Quoting Orcinus
And it worked out quite well! Nice call on that one Greenius! Great trade there!
I almost did the same trade using a different approach.
try it with rsi9
My way of trading by using RSI 9


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GREENIUS
  • #10
  • Jun 6, 2010 2:32am Jun 6, 2010 2:32am
Quoting greenius
try it with rsi9
My way of trading by using RSI 9



Yeah, I saw your thread, very interesting I must say. I'm watching you.
You sure have a nice way to trade, maybe I can learn something with you, but my 21 RSI is special to me. I hope maybe 9 RSI will became too.
  • #11
  • Jun 6, 2010 6:34am Jun 6, 2010 6:34am
in case if found strong harmonic pattern i will post it asap to see how we get pip from him
GREENIUS
  • #12
  • Jun 6, 2010 8:08am Jun 6, 2010 8:08am
I tried trading harmonics using the EA/indicator to show a number of different patterns, and I agree with the previous post, it's a pattern, it may work, it may not.

I would suggest, maybe keep an eye out for triangles, but the A B C D pattern lets you just end up with two triangles next to each other, if you want more you can start counting Elliot waves, it's always a case of, is it really a D? The same with an Elliot wave - its really a wave? and if it is, is it the end of the wave?

Timing is always important also, when does the pattern occur?
  • #13
  • Jun 6, 2010 10:31am Jun 6, 2010 10:31am
See this Giant Gartley
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GREENIUS
  • #14
  • Jun 6, 2010 12:18pm Jun 6, 2010 12:18pm
LET SEE THIS
we have gartley pattern opposite to trend
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GREENIUS
  • #15
  • Jun 6, 2010 12:36pm Jun 6, 2010 12:36pm
Quoting mfurlend

Supposedly this pattern predicts price direction with an astounding 70% accuracy. Recently however, I have been experimenting with a Gartley EA based on the ZUP86 indicator and the results have been... less than impressive.

Unfortunately I cannot post this EA because it is from the paid section of a private forum, but the indicator is free and is linked from forex-tsd.

So tell me, what do you guys think? Is it all hocus pocus and pretty lines, or is there something to it?
Good question! My comments would be that

1) Harmonic patterns only make sense within a Fibonacci ratio based trading plan. Then you should be able to get about 70% hit rate with good risk/reward ratio.

2) Indicators like ZUP are close to useless, They find patterns that aren't based on proper selection of highs/lows (due to the shortcomings of the ZigZag indicator), and they do not calculate potential reversal zones well. So you can't trust the signal and you don't know your risk. Could you base any trading decisions on that?

For an example of how harmonic patterns fit into a trading plan, take a look at Larry Pesavento's work. You should be able to find his Fibonacci Ratios with Pattern Recognition as a free download.
  • #16
  • Jun 6, 2010 3:09pm Jun 6, 2010 3:09pm
Quoting greenius
in case if found strong harmonic pattern i will post it asap to see how we get pip from him
Nice! I'll be alert too!
  • #17
  • Jun 6, 2010 6:56pm Jun 6, 2010 6:56pm
I personally trade Gartley a lot. The only thing I do not rely on any zups LOL, because they move with the price, and adjust everything with each candle. I use my knowledge, Fibonnacci and GFT Gartley tool to verify, I personally traded more than 80-100 patterns for the last year and they are 85% correct. And that's a very high number Check out some of my setups on my thread trading forex using Gartley patterns under trading journals. Thank you and good luck!
  • #18
  • Jun 7, 2010 1:47am Jun 7, 2010 1:47am
let see this
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GREENIUS
  • #19
  • Jun 7, 2010 1:58am Jun 7, 2010 1:58am
Works very well for day-trading too.

Note that this one wasn't spotted by ZUP et al due to the poor wave count using ZigZag.
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  • #20
  • Jun 8, 2010 3:08am Jun 8, 2010 3:08am
i found this on gu
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GREENIUS
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