Fibonacci_Club
Education

Chapter 1 - Harmonic trading pattern

NSE:NIFTY   Nifty 50 Index
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We can distinguish six basic harmonic patterns:
1.1 Gartley 1.2 Butterfly 1.3 Crab 1.4 Bat 1.5 Shark 1.6 Cypher

How to Trade the Gartley Chart Pattern
The Gartley market strategy like any other harmonic pattern is a four-leg reversal pattern that follows specific Fibonacci ratios.
A proper Gartley chart pattern needs to fulfill the following three Fibonacci rules:
AB= retrace to 0.618 Fibonacci Retracement of XA leg;
BC= minimum 38.2% and maximum 78.6% Fibonacci retracement of AB leg;
CD= Poses a target between 1.27 – 1.618 Fibonacci extension of AB leg or an ideal target of 0.786 of XA leg. The Gartley harmonic shares some similarities with the Butterfly Harmonic Pattern .
Step #1 How to Draw Gartley Pattern
To learn how to draw gartley pattern simply follow step by step guide – see figure below for a better understanding of the process:
First, click on the harmonic pattern indicator which can be located on the right-hand side toolbar of the TradingView platform.
Identify on the chart the starting point X, which can be any swing high or low point on the chart.
Once you’ve located your first swing high/low point you simply have to follow the market swing wave movements.
You need to have 4 points or 4 swings high/low points that bind together and form the harmonic pattern strategy. Every swing leg must be validated and abide by the Gartley Fibonacci ratios presented above.
Step #2: How to Trade Gartley Chart Pattern: BUY at Point D which should satisfy the requirement CD = 1.272 – 1.618 of AB leg.
Step #3: Place the Protective Stop Loss below wave X
Step #4: Take profit equals the same price distance of the XA swing leg as projected from the D point
Comment: Next post on
1.2 Butterfly

Comments

nice and beautiful explanation about harmonic patterns . . .can u please suggest a good study material or source for studying harmonic patterns in detail. .
+10 Reply
Fibonacci_Club premanandh
@premanandh, you can read
Trade Chart Patterns Like The Pros
+6 Reply
Well explain, appreciate your efforts. Thanks
Reply
Nice information
Reply
great articles
Reply
Very nice article. Is there any software which can detect these patterns. .EOD and real time?
Reply
@skan_9, https://www.topstockresearch.com/TopMenu/ScreenerByChartPatternsforIndianMarket.html
Follow this link this web provided great screener of all pattens but not Harmonics pattens
+2 Reply
Mark_Beard Fibonacci_Club
@Fibonacci_Club, Ya thats a very useful website. Harmonic Patterns are precious and presence of mind is needed!
Reply
imfaizan skan_9
@skan_9, yes
Reply
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