# Gartley Pattern Definition.

Gartley patterns are a type of harmonic pattern, which is a specific price structure that is identified using Fibonacci numbers. The Gartley pattern is one of the most commonly used harmonic patterns, and it is used to predict potential reversals in the market.

The Gartley pattern is created by drawing two trend lines that connect a series of highs and lows in the market. The first trend line is drawn from the first high to the second high, and the second trend line is drawn from the second low to the first low. The point where the two trend lines intersect is known as the Gartley point.

The Gartley pattern is considered to be complete when the price action moves beyond the Gartley point and closes in the opposite direction of the pattern. This is known as the "reversal zone." The reversal zone is used to identify potential price targets for the pattern.

The Gartley pattern is named after H.M. Gartley, who first described the pattern in his book "Profits in the Stock Market."

##### What is ABCD pattern?

The ABCD pattern is a highly reliable bullish reversal pattern that consists of four price swings, or legs. The first leg is a sharp move higher, followed by a brief consolidation period. This is followed by a second sharp move higher, which is then followed by another consolidation period. The third leg is a sharp move lower, followed by a fourth and final sharp move higher that completes the pattern.

The pattern is considered bullish because it typically occurs at the end of a downtrend and signals a reversal in price direction. The key to trading the ABCD pattern is to enter a long position at the completion of the fourth leg, or at the point D. A stop-loss order should be placed below the most recent swing low, or below point D.

##### How accurate is Gartley pattern?

Gartley pattern is a technical analysis tool that is used to predict the future direction of a security's price. The pattern is based on the Fibonacci sequence and the theory of harmonic patterns.

The accuracy of the Gartley pattern depends on the trader's ability to correctly identify the pattern and to correctly interpret the implications of the pattern. The pattern is not always accurate, and there is no guarantee that it will be accurate in any given situation. However, the Gartley pattern has shown to be accurate in many cases and is a valuable tool for traders.

How do you identify harmonic patterns? Harmonic patterns are geometric price patterns that are based on Fibonacci numbers and, in some cases, Fibonacci ratios. These patterns are used to identify potential reversal points in the market.

There are several different types of harmonic patterns, but the most commonly used are the Gartley pattern, the Butterfly pattern, and the Bat pattern.

The Gartley pattern is created by drawing a Fibonacci retracement from point A to point B, and then drawing a Fibonacci extension from point B to point C. Point D is then the point at which the retracement and extension converge.

The Butterfly pattern is created by drawing a Fibonacci retracement from point A to point B, and then drawing a Fibonacci extension from point B to point C. Point D is then the point at which the retracement and extension converge.

The Bat pattern is created by drawing a Fibonacci retracement from point A to point B, and then drawing a Fibonacci extension from point B to point C. Point D is then the point at which the retracement and extension converge.

These are just a few of the most common harmonic patterns. There are many others that are used by traders to identify potential reversal points in the market.

#### How are Gartley patterns calculated?

Gartley patterns are calculated using Fibonacci ratios. The ratios are used to identify key turning points in the market, which can then be used to make trading decisions.

The most important Fibonacci ratios for Gartley patterns are the 0.618 and 0.382 ratios. These ratios are used to identify key turning points in the market, which can then be used to make trading decisions.

The first step in calculating Gartley patterns is to identify the major trend. Once the major trend is identified, the next step is to identify the swing highs and swing lows. The swing highs and swing lows are used to calculate the Fibonacci ratios.

The Fibonacci ratios are then used to identify the key turning points in the market. These key turning points can then be used to make trading decisions. Is the Gartley a reversal pattern? The Gartley pattern is not a reversal pattern, but rather a continuation pattern. The pattern is created by two converging trendlines, with the price action bouncing off of the trendlines before continuing in the original direction. The pattern is considered to be complete when the price action breaks out of the trendlines and continues in the original direction.