1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Chapter 17, Part III - Gartley's Patterns. Page 2

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 21, 2013.

Thread Status:
Not open for further replies.
  1. Sive Morten

    Sive Morten Special Consultant to the FPA

    Joined:
    Aug 28, 2009
    Messages:
    9,615
    Likes Received:
    9,827
    Here are all the warning signs applicable to this pattern as well as to AB=CD, so I just repeat them:


    [​IMG]

    1. If right after the C point, a gap takes place in the direction of the D point or somewhere on the way to the D point, it could be an early warning sign that probably the CD leg will be extension of AB;

    2. If right after the C point, a long ranged bar (twice normal size) takes place in the direction of the D point or somewhere on the way to the D point, it could be an early warning sign that probably the CD leg will be extension of AB;


    3. If a Gap and/or long ranged bar occurs right near the D point (assuming that AB=CD) this is also a sign that CD could be extension of AB;

    4. Ideally AB should be equal to CD in price and in time. So, if the AB leg forms in 10 bars so the CD leg also should form in 10 bars. This gives the AB=CD pattern strength and increase the odds that the market could show reversal at the D point – temporal or permanent;

    [​IMG]

    5. If the CD leg has greater slope than AB, then probably it could be a 1.27, 1.618 or even greater extension of AB leg;

    6. Also keep an eye on BC depth not as itself but in comparing it with the AB move. If, say, the AB up move takes 20 bars and BC takes 10 and has reached only 0.382 of AB - it tells us that the market is absorbing the sell-off at high price and when sellers pressure will weaken – the market could show solid up thrust – the CD leg could be extended leg.

    7. If BC reaches 0.618 or 0.786 then probably there is a good chances that AB and CD will be equal.

    Pipruit: But here we also have a limitation that the D point couldn’t be outside X, right?​
     
    #1 Sive Morten, Dec 21, 2013
    Lasted edited by : Apr 12, 2016
Thread Status:
Not open for further replies.

Share This Page