Pattern 12 of 18: all patterns
Gartley
The original harmonic pattern. A five-point XABCD shape where B retraces about 61.8% of XA and D ends near 78.6% of XA.
The Gartley describes a correction within a trend. D is the point where the correction is expected to end and the original direction to resume.
- Four confirmed swings X, A, B and C. AB retraces 58% to 66% of XA and BC retraces 38.2% to 88.6% of AB.
- The PRZ (potential reversal zone) is where two projections overlap: AD at 76% to 81% of XA, and CD at 113% to 161.8% of BC. No overlap, no pattern.
How the alerts work for this pattern
- 1Forming
C is confirmed. The PRZ is drawn on the chart before price gets there.
- 3Close to signaling
Price comes within a third of an ATR of the PRZ.
- 4Time to act
Price touches the near edge of the PRZ.
- xCancelled
Price closes beyond C first, or takes more than twice the B to C time.
The textbook trade
- Trigger
- A touch of the near edge of the PRZ.
- Stop
- Beyond the far edge of the PRZ, plus half an ATR.
- Target
- 61.8% of the AD leg back.
Things to watch
- The ratios have a tolerance. A pattern at the edge of every range is a weaker fit than one near the middle.
- D lies inside the X to A leg. If price goes far beyond X, the pattern has failed.
H. M. Gartley, Profits in the Stock Market (1935); it is often called the "222" after the page it appears on. Fibonacci ratios were added later by Larry Pesavento and by Scott M. Carney, Harmonic Trading, Volume One (2004).
On our charts
Real detections by the scanner on our own price data (2026-08-01 to 2026-10-19), with the alerts it sent. Times are New York time. Some worked and some did not.
- 1Forming2026-10-15 11:00 NYX, A, B and C are in; D should end in 25370.6 to 25388.3
- 4Time to act2026-10-15 11:00 NYtouched 25370.6: entry 25370.6, stop 25434.9, target 25204.3
- 5Result2026-10-15 16:00 NYstop (-1.00R)
- 1Forming2026-10-15 06:30 NYX, A, B and C are in; D should end in 2331.4 to 2334.9
- 3Close to signaling2026-10-15 08:45 NYclose to the zone at 2334.9
- 4Time to act2026-10-15 09:45 NYtouched 2334.9: entry 2334.9, stop 2326.8, target 2368.1
- 5Result2026-10-15 10:00 NYstop (-1.00R)
Education, not advice. A pattern describes what many traders watch for; it does not predict what price will do. The textbook stop and target are reference levels, not instructions. Trading involves risk.
Trade your way. The Desk backs the move.
You trade; the Desk allocates its own capital behind your trade, small at first and more as the move proves itself. You keep 90% of what that capital makes. $15 a contract, or try it first on a $1,500 demo.
Trading involves risk. This page is education, not advice; examples come from past data.
