a potential gartley pattern points to a powerful zone that may act as a resistance. Keep in mind that harmoinc patterns always give two scenarios: 1) a bounce from the zone 2) a break through the zone. No harmonic patterns are traded with limit orders. Wait for price to test all the levels first and show the stabilization before you execute your orders. as for the probabilities, scenario #1 has a higher probability than scenario #2 simply because consolidation and bouncing from levels is a more common (70%) phenomena than trending and breaking (30%). I mark this idea as neutral for you to keep your mind open to both possibilities.
Comentarios
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now the pattern is complete and Terminal Price Bar is installed. Within a period of three to seven bars a bear trend bar should appear. If a bull trend bar closes above the Terminal Price Bar's high then consider scenario #2 - a breakout and further upside move.
Now a bull trend bar closes above the Terminal Price Bar's high. Can we BUY instead of Sell?
Alexander_Nikitin
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@huangyixiong, there's no bull trend bar close above the terminal price bar.
michaeljpittman
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@Alexander_Nikitin, am I missing something? It looks like the green bar closed at 1.09665, and the terminal bar upper limit was 1.09621. Therefore it looks like it closed above the terminal bar. Please help
Alexander_Nikitin
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@michaeljpittman, Yes. you are missing the trading methodology. First a bear trend bar appeared. This is a signal to the downside trading. Once position is opened futher signals are ignored. :
Alexander_Nikitin
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@michaeljpittman, and it should not be a green bar it should be a bull trend bar.
Ndzori
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@Alexander_Nikitin, can you please advice where can i study bull and bear bars.
Alexander_Nikitin
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@Ndzori, bull bar is not the same as bull trend bar. you can get a trend bar indicator on my profile page. i posted it for free. just click the "scripts" tab, open it and add to favorites.
elnyceox
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your pattern recognition software is amazing. MPS drew this pattern for me as well.
Alexander_Nikitin
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@elnyceox, Nice to hear that. Thanks for your feedback.
tradesimple_fx
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As far as I read B point should touch at least 61.8 XA for gartley to be formed. In your harmonic pattern this did not realize. May be something I don't know. Can you please enlighten me if possible?