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Hi Kevin,
Having broken the OP support at 36 1/2 the Gartley
based on the 618 retracement of the "ab" leg is no longer valid.
As you suggest it could go to the 786ab
retracement, around 32, to form the alternative gartley numbers, it will be
interesting to follow the developments.
>>>>
I've attached a chart with the one I was talking about.
Yes, my "X" selection is an arbitrary process, and
being a new comer I find that I cannot give any definitive reasoning behind the
process, other than looking for significant reaction points.
My major criteria is that if there is the
possibility of either a Gartley or Butterfly forming, I try not to enter a trade
until the completion of the pattern, even if the final "cd" leg looks
inviting.
>>>>>>
I don't follow you here at all. "D" is considered the point of entry
for the patterns.
As suggested in this case, I would wait until
the expected pattern completion at 67-68, and look for additional indicators to
re-inforce the entry decision.
>>>>>>
Yes, that would be another potential "D" area, possibly with an inviting
looking "cd" leg.
Unfortunately, I have not located any scanning
formula's for indicating potential gartley's.
I am sure they exist, as I believe Gartley
developed the basis for these patterns in the 1930's.
>>>>>>
Interestingly, Larry Pesavento quotes (in Larry's book) from Gartley's book
on the pattern, and what Gartley describes bears minimal resemblance to what
Larry and Scott Carney (a former student of Larry's) describe. Gartley
said nothing about Fibonacci ratios. The pattern he drew in his book
doesn't even have the same number of legs as Larry's "Gartley 222".
I've gravitated to the pattern as a natural extension of learning the
DiNapoli Fibonacci stuff. If I'm not mistaken, Larry is the one that
introduced Fibonacci to Joe.
The way that the Gartley is described in Larry's book caused me to dismiss
it as something that wasn't for me, but I ran across Scott Carney on the Web and
found a significantly different description in Scott's book.
The pattern shows up far more often than the B&B's and DRPO's (in my
experience). As I'm inclined to do my own studies, having enough data is
important. Also, if you're going to trade a pattern efficiently, you have
to have enough opportunities to place the trades in your time frame.
I've come up with a tentative set of rules for trading a Gartley that seems
to be holding up. Time will tell. I'm still working on scan formulas
in both TC2000 and RavenQuote. Wish I had just a fraction of Neal's
computer skills. Even without the scans, though, the patterns show up with
great regularity, at least down to about the hourly time frame.
A fellow in the British Isles, Mark Baker, is coming up with some pretty
cool scan results for Gartley patterns, but to date, they are only for daily or
higher time frames. He's offering the software in beta form on Scott's web
site.
Kevin
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