The
Gartley Pattern The
Gartley pattern was outlined by H.M. Gartley in
his book Profits in the Stock Market,
published in 1935. Although the pattern is named
"The Gartley," the book did not discuss
specific Fibonacci retracements! It was not until "The
Harmonic Trader" was released that the
specific retracements of the B point at a .618 and
the D point at a .786 were assigned to the
pattern. There are others who have assigned
Fibonacci retracements to this framework. However,
they use a variety of Fibonacci numbers at the B
and D points. Despite these variations, the
Fibonacci retracements that yield the most
reliable reversals are the .618 at the B point and
the .786 at the D point. Furthermore, the pattern
should possess a distinct AB=CD pattern that
converges in the same area as the 0.786 XA
retracement and the BC projection (either 1.27 or
1.618). The most critical aspect of the Gartley is
the B point retracement, which must be at a 0.618
of the XA leg. Read
more about the pattern at this link: The
Great Gartley Controversy.
