Gartley Pattern

The Gartley is the original and most-cited harmonic pattern, consisting of five points (X, A, B, C, D) connected by four legs. The defining Fibonacci relationships: AB retraces 61.8% of XA, BC retraces 38.2%–88.6% of AB, CD extends 127.2%–161.8% of BC, and point D completes at approximately 78.6% of the total XA leg. Entry is at D with the stop beyond X, targeting a retracement toward C or A.

Bullish Gartleys form as "M" shapes in downtrends that are completing; bearish Gartleys form as "W" shapes in uptrends completing. The pattern is distinguished from other harmonics (Butterfly, Crab, Bat, Shark, Cypher) by its specific XA retracement at point D. Each harmonic variant differs primarily in the D-point retracement ratio. Harmonic pattern trading requires strict ratio tolerance (typically ±3%) and confluence with structure (D at a prior swing point or supply/demand zone). Approximate patterns that don't hit ratios precisely significantly underperform.