High Probability Gartley Pattern Forex Trading Strategy


Gartley Pattern Forex Trading Strategy

Pattern traders are one of the more successful traders in the forex world. Coupled with a good money management system, many have seen their accounts grow steadily. Its strength is in its simplicity. With pattern trading, traders could easily identify basic shapes, which would indicate an opportunity for a trade.

Fibonacci based strategies are also one of the most effective strategies traders could use. Many traders using Fibonacci based strategies have also grown their accounts exponentially. Its strength is accuracy. This is because Fibonacci strategies are based on fixed ratios, which are proven time and again to have a very high probability.

What if we could combine the two types of strategies into one? What if we could have a pattern based strategy that has the Fibonacci retracements incorporated in its system? Harmonic Patterns! This is what you would be needing.

About Gartley Price Patterns

Harmonic Price Patterns are patterns used in trading which incorporates the Fibonacci ratios into its system. Price usually moves in a series of retracements, extensions and reversals, as a result of the crowd’s psychology. Fear and greed causes traders to judge price to be cheap or expensive, thus causing oscillation on the chart. These oscillations in turn forms recurring patterns, since people’s trading habits, usually recur. Thus, the price patterns emerge. On the other hand, Fibonacci ratios have been proven to be a relatively accurate measurement of price retracements and extensions. These accurate retracements and extensions also has recurring price patterns, known as Harmonic Price Patterns.

Harmonic Price Patterns are so accurate because of its use of precise turning points based on Fibonacci Ratios. Some even claim that Harmonic Price Patterns are 60% – 90% accurate.

One of the more popular price patterns is the Gartley Pattern. Below are pictures of how the ideal bullish and bearish Gartley Pattern should look like.

Gartley Pattern Examples

High Probability Gartley Pattern Forex Trading Strategy 1

High Probability Gartley Pattern Forex Trading Strategy 2

While, the strength of the Gartley Pattern lies in its accuracy, it also has become its weakness. Because of its accuracy, looking for precise Gartley Patterns with the naked eye is near impossible, you would be needing superhuman abilities to do such a feat. Good thing we have technology on our side. Indicators that specifically look for Gartley Patterns are already available in the market.

Now that we have all that we need, let’s dive in to how we should be trading the Gartley Pattern.

The Entry

Once a Gartley Pattern is about to be formed, our indicator forms a box at the area where price is supposed to reverse to create the D-E thrust. As soon, as the pattern is formed, we enter the market at the candle where the pattern is finally formed.

High Probability Gartley Pattern Forex Trading Strategy 3

The Stop Loss

One of the strengths of the Gartley Pattern is that it allows the trader to use tight Stop Losses. Since, the Gartley Pattern is said to have precise turning points, we could assume that once price turns at those exact areas, it would already be heading our direction most of the time.

For this reason, we will be putting our stop loss just a few pips below the signal candle.

High Probability Gartley Pattern Forex Trading Strategy 4

The Take Profit

Since the Gartley Pattern is formed by a series of retracements and extensions, it is natural that the pattern would also be forming minor highs or lows, or peaks and valleys. These highs and lows are natural supports and resistances that other traders also look at as a point of reference for where price could turn. For this reason we will be placing our initial Take Profits on these highs or lows. The advantage of using the Gartley Pattern is that these highs or lows are specific turning points in the pattern, point A and C. With that said, our first Take Profit would be on Point C and our second Take Profit would be on Point A.

High Probability Gartley Pattern Forex Trading Strategy 5

However, the Gartley Pattern is a pattern that predicts a strong thrust in price. It specifically predicts that the price would thrust towards the 1.618 ratio of the XA leg. It is only logical that we also base our final take profit on this assumption. For this reason, we will be placing our Final Take Profit a few pips below the 1.618 ratio of leg XA.

High Probability Gartley Pattern Forex Trading Strategy 6

However, it is recommended that as soon as take profit 2 is hit, trailing stop-losses should be applied, since sometimes price does reverse and the Gartley Pattern’s thrust isn’t fully completed.


Harmonic Patterns are the most accurate set of patterns in trading. The Gartley Pattern however, is said to be one of the most accurate patterns among the Harmonic Price Patterns. This is the strength of the Gartley Pattern – accuracy. If you want a system that is accurate, then trading the Gartley Pattern might be for you.

Another advantage of the Gartley Pattern is its tight stop losses. Because of its precise turning points, we have the liberty to set tight stop losses, which contributes to a healthy risk-reward ratio.

Finally, since the Gartley Pattern predicts an extension of 1.618 Fibonacci ratio, we are given the luxury to earn a great amount of pips, while risking just a few on a tight stop loss.

Trading the Gartley Pattern is one those systems where the odds are stacked in your favor. Couple it with a great money management system and you will be on your way to a steady increase in your account.

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