The Gartley Pattern

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hi,

Calven has written about Wolfwave pattern and i would like to speak about the gartley Pattern. The gartley Ppattern is n the same category that Wolfwave pattern = Advanced Channeling Patterns.

What is Advanced Channeling Patterns ?
Channels provide a simple and reliable way for traders to define their entry and exit points within an equity. Although the basic channel-trading rules provide traders with a good idea of where the price is going within the channel, they leave little insight into where breakouts might occur. Identifying patterns known as Wolfe Waves and Gartleys, however, can help predict these breakouts in terms of both their timing and scope (their proportion to the established channel). This article will take an in-depth look at the channeling techniques centered on these patterns, and how they can be applied to help you profit.

The Gartley ?
The Gartley trading pattern was created by H.M. Gartley, who first illustrated it in his book "Profits in the Stock Market" (1935). The setup consists of a single large impulse wave followed by two small pullback impulse waves. The diagrams below show examples of the ideal setup, both bullish and bearish. In the bullish example XA represents the first large impulse with a price reversal at A. In accordance with Fibonacci ratios, retracement AB should be 61.8% of the price segment A minus X. This percentage is shown by the segment XB.  (ATWChannels4)

At point B, the price again makes a smaller impulse opposite to that of A. Ideally, the retracement BC should be between 61.8% and 78.6% of the AB price range, regardless of the the length of the lines. This percentage is shown by segment AC. At C, the price again makes a reversal impulse opposite to that of B. In this pattern, again as stated by Fibonacci ratios, the retracement CD should be between 127% and 161.8% of the range BC, and this proportion is shown along the line BD.

Price D is the optimal point for buying or selling. At entry D the target retracement to a higher price is initially 61.8% of the range of segment CD. The movement from point D to its next point is extremely profitable. Moves from point D are very quick and powerful, and they follow this model accurately 60% or more of the time.


Here are the key points to remember for Gartleys:
Ideally, AB equals CD in time length.
Point D is a 62-72% pullback from XA.
XD should ideally be 78.6% of the segment range XA.
Ideally CD equals AB.
Take action at point D.

The condition in which these patterns can be found depends on whether they are bullish or bearish:
Bullish Gartleys occur in uptrends.
Bearish Gartleys occur in downtrends.
Figure "ATWChannels6" demonstrates the bullish Gartley at work. And Figure "ATWChannels7" shows the bearish Gartley:


Conclusion :
The most important point is not in the degree of retracement but in the figure...

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An example : ADTR...

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Here is the full article -

http://www.investopedia.com/articles/trading/05/040405.asp

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An another Example : ECPN -> more 500% in 2.5 months !!!

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GPTC -> a good candidate...