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### INTRODUCTION TO GARTLEY PATTERN

The Gartley pattern was first introduced by H.M. Gartley in his book “Profits in the Stock Market”, which was published in 1935. The pattern was named "The Gartley," but in fact, many variations of the Gartley pattern have become common ever since the release of that book. Gartley patterns are chart patterns used in technical analysis and are known for their relationship using Fibonacci numbers and ratios. The Gartley pattern is a reversal pattern with clear rules and provides an excellent reward to risk.
“Classical” chart patterns are considered to be: flag, pennant, wedge pattern, triangle, range, rectangle, flat, head and shoulders, inverted head and shoulders, double top and bottom, trip top and bottom, gap, cup and handle, broadening top. Some of these patterns are reversal signals, others are continuation patterns. Most of the classical charts patterns use Fibonacci levels as well. A flag will typically find support levels at the various Fibonacci points (such as 23.6% and 38.2%) of various swing highs and lows but they are not so prominently used as in Gartley. Read more here.
5 LETTERS
The Gartley is using 5 letters to distinguish the 5 separate moves/waves/impulses. Here is an introduction:
The letter  X is the start of the trend;
The letter  A is the end of the trend;
The letter  B is the first pullback of the trend;
The letter  C is the pullback of the pullback (not breaking point A);
The letter  D is the target of the letter C.
The various Fibonacci relationships between XA and AB have a value when calculating targets for B, C and D. Depending on the type of Fibonacci level the pattern is commonly named differently. The pattern is valid for both a down and an uptrend. In general, though, there is an also a close link to the Elliott Wave Theory. The AB, BC, and CD legs are also known in EW as an ABC correction of XA and a continuation of the XA direction can be expected at point D.
We will now go into the specific Gartley patterns which are usually called Bat, Crab, Gartley, Butterfly, etc.
GARTLEY
This pattern is valid when price respects and bounces off of the XA swing high swing low to form point B at the 61.8% Fibonacci retracement level. The target of point D is, in fact, using the same XA swing high swing low and is aiming for the 78.6% Fibonacci retracement level of XA. The CD leg is therefore often equal to the AB leg.

Other modern variations that have become popular are listed here below.
BAT PATTERN
This pattern is valid when price respects and bounces off of the XA swing high swing low to form point B at the 38.2% or 50% Fibonacci retracement levels (but not more than 61.8%). The target of point D is, in fact, using the same XA swing high swing low and is aiming for the 88.6% Fibonacci retracement level of XA. The CD leg is, therefore, longer than the AB leg.

ALTERNATE BAT PATTERN
This pattern is valid when price respects and bounces off of the XA swing high swing low to form point B at the 38.2% Fibonacci retracement level. The target of point D is beyond the origin of XA and is 1.13 of XA.

BUTTERFLY
This pattern is valid when price respects and bounces off of the XA swing high swing low to form point B at the 78.6% Fibonacci retracement level. The target of point D is beyond the origin of XA and is 1.27 – 1.618 of XA.

CRAB
This pattern is valid when price respects and bounces off of the XA swing high swing low to form point B at the 38.2%-61.8% Fibonacci retracement levels. The target of point D is beyond the origin of XA and is 1.618 of XA.

DEEP CRAB
This pattern is valid when price respects and bounces off of the XA swing high swing low to form point B at the 88.6% Fibonacci retracement level. The target of point D is beyond the origin of XA and is 1.618 of XA.

AB=CD, 5-0, DRIVERS
Here are the remainder of the popularized patterns. An example of 5-0:

An example of AB=CD:

An example of drivers:

SIMPLIFY: SPLIT OF LEVELS
When analyzing the patterns, it becomes obvious that different patterns play out depending on where letter B stops in relationship with XA. This is my attempt to make the patterns easier to interpret (drivers and 5-0 excluded).
PART I: Let us break it down into Fibonacci levels.
1)      38.2%    - Bat / Alternate Bat / Crab
2)      50%        - Bat / Crab
3)      61.8%    - (Bat) / Crab / Gartley / ab=cd
4)      78.6%    - Butterfly
5)      88.6%    - Deep Crab
That means that if the currency bounces up at the 38.2% for instance, then there could 3 Gartley patterns in play.
PART II: Let us continue with this breakdown and analyze the likely Fibs where letter C can stop when Fibbing AB and the answer is simple: C can stop at any Fib of AB, which is 38.2%, 50%, 61.8%, 78.6%, 88.6%.
PART III: The last but not least, the target D.
1)      Bat - 88.6% Fib of XA OR  2.618 of BC
2)      Alternate Bat - 113% Fib of XA (below X) OR   2.0 of BC
3)      Crab - 161.8% Fib (below X)  OR  3.14 of BC
4)      Gartley -  78.6% Fib of XA   OR   1.27 of BC
5)      Butterfly - 161.8% Fib (below X)   OR  1.618 of BC
6)      Deep Crab  - 161.8% Fib (below X)    OR   2.618 of BC