The Gartley is the original harmonic pattern, and its D-point sits inside the prior XA move, making it the most conservative of the family. It looks like a stretched 'M' or 'W' and represents a deep pullback that completes just before the trend is expected to resume.
Defining ratios
- B retraces 61.8% of the XA leg.
- BC retraces 38.2% to 88.6% of AB.
- CD extends 127.2% to 161.8% of BC.
- D completes at 78.6% of XA — inside the XA range.
The signature of the Gartley is the 78.6% D-point: because D does not exceed X, the pattern stays contained within the original move. That containment is what makes it the safest harmonic to trade, though 'safest' still means it needs confirmation.
Trading the Gartley
Enter at point D in the direction of the original trend — long on a bullish Gartley, short on a bearish one — after a reaction confirms the level. Place the stop just beyond X; if price runs past X, the pattern is void. Targets are typically the C point and then the A point, often taken in stages.
The Gartley completes at 78.6% of XA with a 61.8% B-point — enter at D, stop beyond X, and target C then A.