Harmonic Gartly pattern cheat sheet - Part 4

Harmonic Gartley pattern cheat sheet  - Part 4

Our Automated excel sheet for nifty options

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M and W types price structures are similar to other price structures like a wedge, Elliott wave or tringle. we use these structures to identify the support and resistance levels. If we properly measure the harmonic levels it will help us to find the stop loss levels and create an effective trading plan in advance. There are 8 different types of harmonic patterns. The harmonic pattern is derived from the mathematics and Fibonacci number. These harmonic patterns help us to identify the reversal point in the market. In this blog, we will discuss the 4th harmonic patterns called Gartley harmonic pattern

Bullish Gartley harmonic pattern 

1. The bullish Gartley pattern starts when stock is in the bear phase 
2. X is the point where the pattern starts 
3. To validate this pattern AB must =CD otherwise this will not work
4. AB leg can retrace 61.8% of XA
5. BC can retrace 88.6% of AB
6. CD can retrace 116% of BC
7. Buy the stock when it reaches the D point
8. The first target for this pattern is point B
9. The Second target for this pattern is the point C
10. The final target for this pattern is 161.8% from Point C

Bearish Gartley harmonic pattern

1. Bearish Gartley pattern starts when stock is in bull phase 
2. X is the point where the pattern starts 
3. To validate this pattern AB=CD this equation should be followed 
4. AB leg can retrace up to 38.2 % of XA
5. BC can retrace 88.6% of AB
6. CD can retrace 116% of BC
7. Sell the stock when it reaches the D point
8. The first target for this pattern is point B
9. The Second target for this pattern is the point C
10. The final target for this pattern is 161.8% from Point C

Learn Harmonic pattern cheat sheet for the stock market - Part 3
Learn Harmonic patterns cheat sheet for the stock market - Part 1
Learn Nifty 50 - Why Option Chain Analysis fails?
Calculate Option Chain Probability - Implied Volatility Excel Sheet

We will update the remaining patterns in our nex blog. we provide the updates daily

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