How to measure the Gartley harmonic pattern?
Stage 1: Formation of B retracement leg – This leg must form and touch 0.618 retracement only from point X to point A impulsive leg, hitting the next level 0.786 would invalidate the pattern.
Stage 2: Formation of C Impulse leg – Once stage 1 is met, point C would be the next one to form and must be within 0.382 to 0.886 levels of point A to B retracement leg.
Stage 3: Formation of D retracement leg – Gartley pattern must form point D at 0.786 point X to point A retracement. This is where the pattern is considered complete and the levels to execute a trade. Stop losses placed just below point X and targets at 0.382 and 0.618 measuring point A to point D.
|XA||Any impulse leg|
|C||0.382 – 0.886 AB|
|Stop loss||Few pips from X|
|Take profit||0.382; 0.618 AD|
Long Trade example
Short Trade example