In this idea I'd like to demonstrate a tradintional approach to gartleys. We first measure ab=cd. I used gold rectangles to see price and time projection. The second measurement is the 0.786XA. The area between the two is called Potential Reversal Zone (PRZ). Now let's see if it is complemented by other fibonacci measurements. If we stretch the AB inversion we find a 1.414 pointing to the PRZ. If we stretch AB inversion we find a 1.618 also pointing to the same area. If we look left we see the area recently acted as support/resistance zone and priceaction had to install powerful bars to break it.
Now goes the most important part:) You guys, look at the market and let the market be your teacher. When (if) price reaches the Potential Reversal Zone you don't be in a hurry to enter. You wait for a reversal priceaction. The market itself gives you numerous examples on how the reversal priceaction at this area looks like. Keep in mind that other areas may have different reversal priceaction. There's no universal recepie that suits all patterns, all timeframes, all financial assets. Reversal priceaction is unique for every zone. Let the market tell you what should be the reversal priceaction for the zone.
Now goes even more important part:) Look at the breakout priceaction for this zone. Breakout priceaction is also unique for the pattern, the timeframe, the asset and so on. Luckily, the Market tells you how the breakout for this zone should look like. When(if) the price reaches the PRZ and you see the breakout priceaction you'd better stay away from trading or you wait for a breakout back (the way it happened in the past)
Initial stoploss is 1.13XA. Just in case the market crashes while we are in. In other cases we get out if we see a breakout priceaction of the PRZ. If reversal evolves cut the risk placing stoploss just below the reversal (atr offset serves good).
In case of priceaction reaches targets - it's up to you whether you scale out or not. I don't. I look at priceaction at the target area. If price breaks the target area I stay in letting my profits run. But if there's a reversal priceaction then get out with whatever profit.
Good luck.
Now goes the most important part:) You guys, look at the market and let the market be your teacher. When (if) price reaches the Potential Reversal Zone you don't be in a hurry to enter. You wait for a reversal priceaction. The market itself gives you numerous examples on how the reversal priceaction at this area looks like. Keep in mind that other areas may have different reversal priceaction. There's no universal recepie that suits all patterns, all timeframes, all financial assets. Reversal priceaction is unique for every zone. Let the market tell you what should be the reversal priceaction for the zone.
Now goes even more important part:) Look at the breakout priceaction for this zone. Breakout priceaction is also unique for the pattern, the timeframe, the asset and so on. Luckily, the Market tells you how the breakout for this zone should look like. When(if) the price reaches the PRZ and you see the breakout priceaction you'd better stay away from trading or you wait for a breakout back (the way it happened in the past)
Initial stoploss is 1.13XA. Just in case the market crashes while we are in. In other cases we get out if we see a breakout priceaction of the PRZ. If reversal evolves cut the risk placing stoploss just below the reversal (atr offset serves good).
In case of priceaction reaches targets - it's up to you whether you scale out or not. I don't. I look at priceaction at the target area. If price breaks the target area I stay in letting my profits run. But if there's a reversal priceaction then get out with whatever profit.
Good luck.
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