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Chapter 17, Part III - Gartley's Patterns. Page 7

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

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Here, on chart # 3 you can see a lot of AB=CD’s and “222” patterns that include each other:


    Chart #3 | 8-hour EUR/USD harmonic patterns as fractals
    [​IMG]

    You’re absolutely right. Besides, since CD is extended leg, it’s very often take the shape of a “222” pattern. Treating classical patterns in such way allows you to trade them even during the time when they are forming. Also it gives you huge advantage in terms of stop placement.

    H&S pattern, by the way, very often includes a Gartley Butterfly, as well as AB=CD and “222”. Particularly the Butterfly and other animals we will talk below.

    Bat pattern


    [​IMG]

    This pattern is just a sub-case of “222” pattern. Bat assumes a potential reversal point at 0.886 Fib retracement level of the X-A swing. In fact, we could not speak about it, because there is no any difference with “222”, but since this name you can see very often, and to avoid any confusion from your side, it’s better to make mention of it here:

    1. A-B move usually 0.382-0.50 of X-A;

    2. BC could be any – as 0.382 as 0.886 of A-B;

    3. Since BC could show any retracement of AB, hence CD leg also could have different extension from 1.618 to 2.168 of AB.

    The major condition of Bat is that reversal happens around 0.886 Fib retracement level of X-A swing.


    [​IMG]
     
    #1 Sive Morten, Dec 21, 2013
    Lasted edited by : Apr 12, 2016
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