Trading The Gartley Pattern -> Trading The Gartley Vibe

So, once upon a time in the 1930s, there was this trader bro named Harold McKinley Gartley, who was basically the OG stock market whiz.

Like, dude had a whole fan club for his stock market advice service. 📈

Harold's gig was all about using some big brain science and stats to decode the mysterious ways of the stock market. 🤓🧠

Gartley claimed he cracked the major trading codes: what and when to buy. Straight up, traders started using his patterns everywhere. They even wrote books and made software based on his genius. 🔥📚

Gartley a.k.a. “222” Pattern

The Gartley “222” pattern gets its name from the page it’s on in Gartley’s book, Profits in the Stock Market, which is like super iconic now. 📖

These Gartley patterns are built on the ABCD vibes we've already discussed, with an extra boost of highs or lows thrown in for funsies.

Usually, these patterns pop up when the trend decides to take a nap. They look like an 'M' for uptrends or 'W' for downtrends. ♪

Traders dig these setups to find the best moments to slide into an overall trend. ✌️

A Gartley pattern forms when the price action’s been on a nice road trip (up or down) but suddenly needs a pit stop.

What makes the Gartley lit 🕶 is that its reversal points are straight-up Fibonacci retracement and Fibonacci extension levels. It's basically a big hint that a plot twist is coming. 🔄

Spotting this pattern isn’t a piece of cake, though, especially when you throw in all those Fibo tools. But no worries! Taking it step-by-step is the cheat code. 🤔✨

This JPG has a bullish or bearish ABCD pattern, but X marks the spot way past D, like Narnia style. 🦁

The “perfect” Gartley setup is like:

1. AB should take a chill pill with the .618 retracement of XA.
2. BC can either snooze at .382 or .886 retracement of AB.
3. If BC retraces like .382 of AB, then CD better be 1.272 of BC. If BC chills at .886 of AB, CD should flex with 1.618 of BC.
4. CD should just go .786 retracement of XA, no biggie.

Gartley Mutants: The Animals

Fast forward, and the Gartley pattern became meme-level popular, so folks remixed it and named the knockoffs after zoo animals. 🦁🐯

For some oddball reason, it’s like a PETA conference now (maybe they’re just vibing with Animal Planet?). Anyway, here come the squad... 🚀

The Crab

So in 2000, Scott Carney, aka Mr. Harmonic, discovered the “Crab”. 🦀✨

He flexed that it’s the most accurate pattern ‘cause the Potential Reversal Zone feels like "price better reverse or imma lose my shirt.” 🙈

With major stash-to-risk vibes, it’s super high-key strategic for tight stop losses. The “perfect” crab's checklist includes:

1. AB should be the .382 or .618 retracement of XA, no cap.
2. BC can vibe at .382 or .886 retracement of AB.
3. If BC is .382 of AB, then CD should roll as 2.24 of BC. For a .886 BC, CD extends to 3.618, like a boss.
4. CD also needs that 1.618 extension of XA for max success.

The Bat

In 2001, Carney didn’t stop, he discovered yet another pattern called the “Bat.” 🦇

The Bat, with its .886 retracement, is basically the Bat Signal for reversals. It comes flaunting these specs:

1. AB should vibe at the .382 or .500 retracement of XA.
2. BC can either chill at .382 or .886 retracement of AB.
3. If BC hits .382 of AB, then CD moves to a 1.618 extension of BC. If BC is .886 of AB, CD should drift to 2.618.
4. CD should also rewind to .886 retracement of XA.

The Butterfly

Then, we’ve got the Butterfly pattern, ready to float in. 🦋✨

Spotting this setup is like Ali moving in for a KO; it's pips galore! 🥊

Crafted by Bryce Gilmore, the Butterfly pattern stands out with a .786 retracement of AB relative to XA.

Butterfly identifies with these traits:

1. Move AB should roll back as a .786 retracement of move XA.
2. Move BC can be either .382 or .886 retracement of move AB.
3. If retracement of move BC is .382 of move AB, then CD should roll as 1.618 of BC. Similarly, if move BC vibes at .886, then CD flies to 2.618 of BC.
4. CD should stroll as a 1.27 or 1.618 extension of XA.