What it looks like
Five swing points. XA is the first leg. AB pulls back 61.8% of XA. BC moves back towards A without passing it. CD then extends so that D sits at 78.6% of XA, measured from A, so D stays inside the start point X. In the bullish version XA rises and D is a low; in the bearish version XA falls and D is a high. Small tolerance around each ratio is normal.
What it means
The swings have reached the point where the Gartley says the move should end, known as point D. It is a forecast made from proportions, not a sign that price has turned. Harmonic traders believe moves often stall at these Fibonacci proportions because many orders and profit targets gather there. Point D gives a precise place to act and a tight place to be proved wrong, which is the appeal of the pattern.
Bullish and bearish versions
How to trade it
- 1
Label X, A, B, C and D and check the ratios fit the Gartley.
- 2
Confirmation (optional but common): a candle that turns at D, such as a close back up from D for the bullish version.
- 3
Entry: buy near D for the bullish version, sell near D for the bearish.
- 4
Stop: just beyond D. Example on gold (bullish): X 3,950, A 4,050, B 3,988 (61.8%), C 4,030, D 3,971 (78.6%). Buy near 3,972 with a stop at 3,964, an 8 point risk. Last leg C to D is 59 points, so targets are about 3,994 (38%) and 4,008 (62%).
- 5
Targets: 38% and then 62% of the last leg (C to D), measured back from D.
A close beyond D: below D for the bullish version, above D for the bearish version.
Where it works best
On 1 hour to daily charts with clean, well defined swings, such as gold or EURUSD in an orderly pullback.
WickSpeak finds bullish and bearish Gartley patterns automatically, measures the ratios for you and names the pattern on the candles that made it. The note says what it is, how to trade it near D and that a close beyond D proves it wrong. In Playbook you can use it as a condition in a play, alone or alongside other patterns and indicators (any of the 146 patterns can be a condition), and backtest it on past candles with your own costs.
Common mistakes
- Entering before price reaches D, on the assumption it will get there.
- Forcing ratios that are well off the 61.8% and 78.6% marks.
- Placing the stop well beyond X; the pattern is cancelled by a close beyond D, so the stop belongs just past D.
Related patterns
Questions traders ask
What are the Gartley pattern ratios?
B retraces 61.8% of the first leg XA, and D completes at 78.6% of XA. BC and CD fill in between, with D never passing X.
Is the Gartley bullish or bearish?
It comes in both. A bullish Gartley completes at a low and is bought; a bearish Gartley completes at a high and is sold.
What is the difference between a Gartley and a Bat?
In a Gartley B is at 61.8% and D at 78.6% of XA. In a Bat B is shallower, 38 to 50%, and D is deeper, at 88.6%.
Are harmonic patterns reliable?
A harmonic pattern is a forecast made from proportions, not a sign that price has turned. That is why many traders wait for a candle to turn at D before entering. We do not quote win rates; backtest the pattern on your own market first.