Gartley pattern
A ratio-constrained XABCD retracement structure.
What to look for
- XA impulse and AB retracement
- BC and CD satisfy declared ratio bands
- D completes near the specified XA retracement
XA falls from 112 to 100, B recovers about 61.8% of that move, and D lands near the 78.6% XA level. The ratios and the later turn are checked separately.
For the bearish version, XA rises, D finishes near the matching XA level, and price must then show a clear bearish turn.When the pattern is confirmed
A reversal trigger after the potential reversal zone is reached.
Where the idea is wrong
Beyond the X point or a tighter D-zone rule.
The easy mistake
Many overlapping ratios create multiple-testing and hindsight risk.
A complete gartley pattern example
Begin with a clearly defined XA impulse and one published set of ratio bands for AB, BC, CD and the D completion area. Keep near-matches visible rather than adjusting the ratios after the turn.
First rule to test
Rejection close — after D reaches the defined zone, enter only when a candle closes away from it by the chosen amount.
Alternative rule
Structure shift — wait for a completed break of the nearest minor swing against CD, then enter no earlier than that break.
Place it where the pattern is wrong
Place the example stop one fixed ATR fraction beyond X and reject candidates whose chosen position size cannot accommodate that structural distance.
Context, trigger and risk
The pattern handles timing. The other tools decide whether the location makes sense and how far normal price movement can reach.
Measures the chosen XABCD ratio bands consistently.
Defines the five swing points and the post-D confirmation.
Sets ratio tolerances and the stop buffer in comparable units.
First exit to test
Retracement target — close at one preselected retracement of the AD leg, applied identically to every example.
Alternative exit
Prior swing target — close at B, or the nearest opposing swing if it comes first, using the level visible at entry.
Patterns need a method around them
Open a related strategy to see the wider market filter, entry, stop, exit and no-trade rule.
RSI divergence reversal
Tests whether a mismatch between price and RSI swings adds value after exhaustion.
- ENTRY
- Enter next bar open after price closes beyond the highest high of the five bars ending at the confirmed second low for bullish divergence; mirror below the five-bar low for bearish divergence.
- STOP
- Stop is 0.20 × ATR(14) beyond the second price pivot. Risk 0.50% of equity and round down to 0.01 lot.
- EXIT
- Take profit at 2R. Exit at market after 20 completed H4 bars if neither stop nor target has traded.
Support and resistance rejection
A framework for testing reactions at levels that genuinely predate the trade.
- ENTRY
- Enter at the next H1 open after the first qualifying rejection close back above the prior-day low or below the prior-day high.
- STOP
- Place stop 0.20 × ATR beyond the rejection candle extreme. Risk 0.50% of equity and round down to 0.01 lot.
- EXIT
- Take profit at 2R. Exit after 12 completed H1 bars if neither stop nor target trades.
Trend pullback
Research whether shallow retracements inside an objective trend resume in its direction.
- ENTRY
- After eligibility is true, place a market order at the next H1 open when the signal candle closes beyond the highest high of the previous two pullback bars for a long, or below their lowest low for a short.
- STOP
- Place the stop 0.25 × ATR(14) beyond the pullback extreme. Size so entry-to-stop risk equals 0.50% of demo equity, rounded down to 0.01 lot; never widen the stop.
- EXIT
- Place a fixed target at 2R immediately after entry. If neither stop nor target trades first, exit at market after 24 completed H1 bars.
Try it on older charts
Use fixed ratio bands and report rejected near-matches.