Simply Chart Patterns

Let History Guide Your Future

Archive for the category “Gartley Pattern”

[US Stocks] More Solar Companies with Daily Bullish Harmonic Patterns

Following up from my previous post, here are two more solar companies with Bullish Harmonic Patterns on their daily charts. This time they are Bullish Gartleys. However, unlike the Bat in my previous post, these are not too perfect, so caution and confirmation are required. I’m watching the green price zones for potential bullish reversals.

Trina Solar (TSL) Daily Chart with Bullish Gartley Harmonic Pattern

Ja Solar (JASO) Daily Chart with Bullish Gartley Harmonic Pattern

 

Interesting Bullish Cypher Forming on The AUD/NZD Daily Chart

Interesting Bullish Cypher Forming On The Daily AUD/NZD Charts

An interesting series of events could be forming up on the Daily Chart of AUD/NZD.

Firstly, there is a Bullish Cypher Pattern forming up as price is pulling back to form point D at the 78.6% Fibonacci Retracement level of the XA leg. The requirements for a good Cypher pattern is as follows:

  1. The AB leg must retrace at least to the 38.2% Fibonacci retracement level of the XA leg. This one pulled back to 61.8%
  2. The Fibonacci extension of the XA leg must reach at least 127.2% and must not exceed 141.4%.
  3. The subsequent pullback after point C must reach the Fibonacci 78.6% retracement level of the XC leg to form Point D and the Potential Reversal Zone.

Secondly, there is a larger Bearish Gartley Pattern also forming on this pair. So far, it has already completed the XA and AB legs and is currently forming the BC leg which nicely coincides with the completion of the Bullish Cypher’s Point D.

This scenario presents the opportunity to long first based on the Bullish Cypher and then short later when the larger Bearish Gartley pattern completes (as shown by the red dashed arrows).

Happy Pip Hunting to All!

Bearish Gartley Spotted on The 4-Hour Chart of EUR/AUD

Bearish Gartley Forming on EUR/AUD 4-Hour Chart

Yet another Bearish Gartley forming on the EUR/AUD 4-Hour chart. The features of this pattern is as follows:

  1. The AB leg retraced almost exactly to the Fibonacci 61.8% retracement level of the XA leg
  2. The BC leg retraced to almost the Fibonacci 61.8% level of the AB leg
  3. The 127.2% Fibonacci extension level of the AB leg ends up close to the 78.6% retracement level of the XA leg
  4. The 141.4% Fibonacci retracement level of the BC leg also falls close to the 78.6% retracement level of the XA leg.

Like always, my trade plan for this setup is as follows:

  1. Place pending order to sell at Point D
  2. Stop loss will be placed 30 pips above point X
  3. First target will be at the 38.2% retracement level of AD
  4. Second target will be at the 61.8% retracement level of AD

Happy Pip Hunting to All!

Bearish Gartley Forming on EUR/USD 4-Hour Chart

EUR/USD 4-Hour Chart With a Bearish Gartley Pattern Forming

Doing my usual search for trading opportunities on a Sunday night and came across this almost perfect looking Bearish Gartley Pattern forming up on the 4 Hour chart of the EUR/USD pair. The features of this particular pattern are as follows:

  1. The AB leg retraced almost to the pip to the 61.8% fibonacci retracement level of the XA leg. The first good sign that a perfect Gartley is forming
  2. The BC leg also retraces to almost exactly on the 78.6% Fibonacci retracement level of the AB leg.
  3. The 127.2% Fibonacci retracement level of the BC leg will fall almost perfectly on top of the 78.6% of the XA leg.
  4. Lastly, the projected CD leg of the AB=CD pattern also ends up right on top of the 78.6% Fibonacci retracement level of the XA leg.

The reversal zone for this setup is very tight at Point D due to the close proximity of three of the Fibonacci levels mentioned above.

My trade plan for this setup is as follows:

  1. Place pending order to sell at point D.
  2. Stop loss to be placed 20 pips above point X.
  3. First target will be at the 38.2% Fibonacci retracement level of AD.
  4. Second target will be at the 61.8% Fibonacci retracement level of AD.

Happy Pip Hunting to All!

Bullish Gartley Pattern Forming On NZD/CHF 4-Hour Chart

Bullish Gartley Forming On NZD/CHF 4-Hour Chart

On this Wednesday morning, I have found this nice looking Bullish Gartley Pattern which is currently forming on the 4-Hour timeframe of the NZD/CHF pair.

My Fibonacci Ratio analysis is as follows:

  1. The AB leg retraced nicely to the Fibonacci 61.8% retracement level of the XA leg.
  2. The BC leg also retraced up to the Fibonacci 61.8% retracement level of the AB leg.
  3. The Fibonacci 127.2% retracement of the BC leg falls right on top of the Fibonacci 78.6% retracement level of the XA leg
  4. The 127.2% Fibonacci extension of the AB leg is about 14 pips below the 78.6% retracement level of the XA leg.

All these factors point to a potential reversal zone around Point D. With this in mind, my personal trade plan for this setup is as follows:

  1. Place pending order to buy this pair at Point D
  2. Stop loss is 20 pips below Point X
  3. First Target is the 38.2% Fib retracement level of the AD move
  4. Second Target is the 61.8% fib retracement level of the AD move.

Happy Pip Hunting to All!

Bullish Gartley Found on AUD/USD 60 Minute Chart

AUD/USD 60 Minute Chart With A Bullish Gartley Pattern

Following on from my previous post about the Bearish Bat pattern forming on this pair on the Daily Chart, I decided to step down several timeframes to see if there are any shorter term setups available.

Well, guess what… On the 60 minute chart, there appears a Bullish Gartley pattern.

The following features makes it an almost perfect pattern:

  1. There is a AB retrace to the 61.8% level of the XA leg
  2. BC retraces to the 61.8% level of the AB leg
  3. AB Fibonacci 127.2% extension ends up close to the 78.6% retrace level of the XA leg
  4. BC 141.4% retrace level ends up also close to the 78.6% retrace level of the XA leg.

Unfortunately, it seems that price has already bounced off Point D and I seem to be too late in taking this trade.

Anyway, my trade plan for this, if it comes true is as follows:

  1. Wait for a double bottom, where price retest the point D again.
  2. Look for bullish divergence on the RSI
  3. If the above occur, then place buy order
  4. Stop loss will be 20 pips below Point X
  5. Target 1 at 38.2% retrace level of AD
  6. Target 2 at 61.8% retrace level of AD

Happy Pip Hunting to All!

 

Update:

AUD/USD 60 Minute Chart with Bullish Gartley Pattern Updated

Unfortunately, as you can see from the pic above, AUD/USD has moved higher without coming back down to form the Double-Bottom as I had hoped for. Nonetheless, it shows the power of Fibonacci Ratio confluence and Harmonic Patterns.

Well folks, its back to the drawing board for me.

Bullish Gartley Forming On GBP/CAD 4-Hour Chart

GBP/CAD 4-Hour Chart With Bullish Gartley Pattern Forming

Third Harmonic Pattern tonight.

This one is a Bullish Gartley Pattern forming on the 4-Hour Chart of the GBP/CAD pair. The relevant features of this pattern are as follows:

  1. AB leg retraces to 61.8% of the XA leg
  2. BC leg retraces to 50% of the AB leg
  3. The 127.2% extension of the AB leg is close to the 78.6% retrace level of the XA leg.
  4. The 141.4% retrace level of the BC leg coincides almost perfectly with the 78.6% retrace level of the XA leg.

My trade plane for this setup is as follows:

  1. Place pending order to buy at Point D
  2. Stop Loss will be 30 pips below Point X
  3. Looking for first target at 38.2% retrace of AD
  4. Target 2 will be the 61.8% retrace of AD.

Happy Pip Hunting to All!

Bullish Gartley Pattern Found On EUR/JPY M30 Chart

Bullish Gartley Pattern On EUR/JPY M30 Chart

Hi! I’m back after a long while.

Anyway, I’ve found a Bullish Gartley Pattern on the 30-Minute Chart of the EUR/JPY pair.

Key Features

  1. Pattern completion point D is a perfect AB=CD pattern
  2. Point D is also 88.6% retracement of the XA leg
  3. Point D is also 176.4% extension of the BC leg.

Trade Plan

  1. Entry at Point D (103.14)
  2. Stop Loss 5 pips below 161.8 times the AB leg (102.85)
  3. First Target at 38.2% retracement of the AD leg (103.62)
  4. Second Target at 62.8% retracement of the AD leg (103.92)
  5. Will set stop loss to break even once stop loss amount has been cleared.

EUR/USD H4 Chart: Potential Bearish Gartley In The Making?

EUR/USD H4 Chart: Potential Bearish Gartley Forming

How things can turn in an instant. Such is the nature of our markets nowadays. Bearish sentiments have been pushed aside temporarily, in my humble opinion, by some interesting news that came out over-night and this morning.

After cutting back on interest rates yesterday, the Aussies released news this morning that their GDP has gone up by 1.3% QoQ. The expected number was a modest +0.5%. This piece of news coupled with comments from the Fed’s Evans who is looking for stronger accomodative policies brought back risk-on attitudes today. Don’t take my word for it, read all about it and more here.

Now, back to the charts.

There is a potential Bearish Gartley Harmonic Pattern (See white lines) forming. It is not a perfect pattern based on the Fibonacci ratios, but if there is further follow-through of these Risk-On sentiments, the CD leg of the pattern might end up with Point D in the middle of the Resistance Zone highlighted in Orange. As to what makes a perfect Bearish Gartley pattern, please refer here.

Once again, we will be waiting and seeing what price does. I will be waiting to see if there is any kind of reversal patterns in the Critical Resistance Zone to take a short trade. Patience to wait for the right setups and patience to wait for price to tell us what it is doing are the keys, as always.

Potential Bearish Gartley Pattern On EUR/USD Daily Chart

Potential Bearish Gartley Pattern On EUR/USD Daily Chart

There is a potential Bearish Gartley Pattern forming on the Daily Chart of EUR/USD. The potential reversal zone at Point D is the confluence of AB=CD, 61.8% fibonacci retracement level of the XA leg and also there is a potential support/resistance zone marked out in green. The 200 SMA is also approaching closer to the PRZ. The upper downtrend line of the down channel also coincides nicely with the PRZ.

The plan is to wait for price to reach the PRZ and then shift to the 4-Hour timeframe to watch for a reversal pattern to short the pair.

Post Navigation

Follow

Get every new post delivered to your Inbox.

Join 56 other followers

%d bloggers like this: