What it is
The Gartley Pattern is the original harmonic pattern, first described by H.M. Gartley in 1935 and later refined with Fibonacci ratios by Scott Carney. It's a five-point pattern (XABCD) where price retraces within the XA leg, forming a specific geometric shape.
In a bullish Gartley, price declines from X to A, bounces to B, drops to C, then makes a final decline to D — where D must be at the 78.6% retracement of XA. This is the reversal point. The bearish version is the mirror image.
The Gartley is the most commonly traded harmonic pattern because its 78.6% completion at D offers excellent risk:reward — the stop is tight (below X) and the targets are substantial.
The psychology
The Gartley captures a deep but controlled retracement. The XA move establishes the range. The ABCD structure within it creates a final test of support/resistance at the 78.6% level.
Point D works as a reversal because it represents the last Fibonacci level before full retracement. Traders who bought at A are still in profit, so there's no forced selling. But the correction has been deep enough to shake out weak hands.
The 78.6% level is critical — it's the square root of 61.8%, giving it mathematical significance in Fibonacci analysis. When price reaches this level with the proper ABCD internal structure, the reversal probability is highest.
Identification
- 01XA leg — Clear impulse move defining the range
- 02AB retracement — Must retrace 61.8% of XA
- 03BC retracement — 38.2–88.6% of AB
- 04D completes at 78.6% of XA — The critical reversal level
- 01BC = 127.2–161.8% of AB — Precise extension
- 02Internal ABCD symmetry — AB ≈ CD in time and price
- 03D aligns with other support/resistance — Confluence
- 04RSI/MACD divergence at D — Momentum confirmation
- 01D exceeds point X — Pattern invalidated (that's a Butterfly)
- 02AB doesn't reach 61.8% of XA — Ratios don't qualify
- 03D is far from 78.6% of XA — Not a Gartley
- 04Price blows through D without hesitation — No reversal forming
Execution framework
Enter at point D (78.6% of XA) with a reversal candle for confirmation. Limit orders at the exact level work when ratios are precise.
Below point X (bullish) or above point X (bearish). If D exceeds X, the Gartley is invalid.
T1: 38.2% retracement of AD. T2: 61.8% of AD. T3: Point A (full reversal of the CD leg).
Typically 1:2 to 1:3. The tight stop at X and substantial targets make Gartleys attractive.
Context matters
The Gartley is the first harmonic most traders learn and remains the most reliable. Its precise Fibonacci requirements filter out noise and identify high-probability reversal zones.
- 01All Fibonacci ratios within 5% of ideal
- 02D completes at a known structure level
- 03Volume declining into D
- 04Higher timeframe supports the reversal
- 01Ratios are approximate (10%+ deviation)
- 02D completes in open space
- 03Strong momentum driving through D
- 04Pattern against the macro trend
The Gartley's edge is its tight invalidation at X. If you're wrong, you lose small. If you're right, the reversal from 78.6% gives you a big swing.
Compare the full pattern set
Use the library to compare similar structures before deciding what the chart is actually building.