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The Gartley pattern was outlined by H.M. Gartley in his
book Profits in the Stock Market, published in 1935.
Although the pattern is named "The Gartley," the book did not discuss
specific Fibonacci retracements! It was not until "The Harmonic Trader" was released that the
specific retracements of the B point at a .618 and the D point at a
.786 were assigned to the pattern. There are others who have assigned
Fibonacci retracements to this framework. However, they use a variety
of Fibonacci numbers at the B and D points. Despite these variations,
the Fibonacci retracements that yield the most reliable reversals are
the .618 at the B point and the .786 at the D point. Furthermore, the
pattern should possess a distinct AB=CD pattern that converges in the
same area as the 0.786 XA retracement and the BC projection (either
1.27 or 1.618). The most critical aspect of the Gartley is the B point
retracement, which must be at a 0.618 of the XA leg.
Read more about the pattern at this link: The Great Gartley Controversy.
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