The Gartley Harmonic Pattern

The most commonly used harmonic pattern is the Gartley, this pattern is based on Fibonacci numbers and ratios. The Gartley pattern offers assistance to traders in identifying reaction highs and lows.

H.M. Gartley laid down the foundation for harmonic chart patterns in 1932 in his book ‘Profits in the Stock Market’.


How often is the Gartley pattern traded?

A harmonic pattern operates on the basis that Fibonacci sequences can be applied in building geometric structures, like retracements and breakouts in prices. The Fibonacci ratio is common in nature. It has become a famous area of focus among technical analysts that use tools.

This is one of the most traded patterns. It is a retracement and continuation pattern that is formed when a trend temporarily changes direction before continuing in its original direction. It provides a low-risk opportunity for traders to go into the market where the pattern finishes and the trend comes back.

Let's dive a little deeper

What does the Gartley tell us as a trader?

A lot of technical analysts make use of the Gartley harmonic pattern together with other chart patterns or technical indicators. For instance, the pattern can give a big picture overview of where the price is likely to go over the long term. In the meantime, traders focus on executing short-term trades in the direction of the predicted trend. The breakout and breakdown price targets may also be used as support and resistance levels by traders.

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