back start next[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [ 53 ] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95] 53 This was a fantastic set-up because your loss limit was veiy clear. Your stop loss would have been placed just below X - maybe at 11 1/2 or 11 1/4. If the stock declined past this point, you would know that the reversal zone was invalid. However, with such a harmonic set-up the probability for a valid reversal was very likely. This example is another case where the risk was rather small in comparison to the potential bounce.When this situation occurs again in the future, where five numbers converge in a specific area, you must realize that a reversal is almost certain. Although anything can happen in the stock market, this trade was an excellent opportunity to buy. After calculating the potential reversal zone, between 12 1/8 and 15 3/4, you should have known that the stock had to reverse within this area. Therefore, it is important to respect what the harmonic calculations are indicating because these set-ups can offer a substantial opportunity for profit.Bearish GartleyIn a bearish Gartley, point X is the highest in the pattem. Point A must be below point C, and point D must complete above point B. Again, the completion of point D is critical for a valid reversal, as the stock must not rally above point X. The pattern is illustrated in the following diagram.BEARISH GARTLEY: SELL AT D!These illustrations are the geometric pattems to look for in price charts for a valid Gartley. These pattems should be easily identified. Ifthe pattem is not obvious, you might be trying to "force" the pattem. The key element in the Gartley is to look for a distinct AB=CD set-up. Most Gartley pattems will have nice AB=CD pattems that are very symmetrical, as well. These pattems occur frequently, so you should be able to observe them in many stock charts.Bearish Gartley Stop LossIn the bearish Gartley, the stop loss should be placed just above the initial starting point (X). Although price action can become extended and retest this area, the stock should not break above it.bearish gartley stop loss limit just above x!Sometimes, the price action will break the point at X and then reverse off that move. But, these situations are difficult to gauge. Personally, I focus on the price action in the area between points X and D. I want to see a clear reversal that occurs quickly.I recommend that you closely watch the price action when a stock enters into the potential reversal zone. As with any trade execution, you should use caution and be prepared for anything to happen during such circumstances. But, the most important point in the stop loss limit for a Gartley is at X. If a stock breaks this level, the pattem is most likely invalid and will not yield the anticipated reversal.Ideal Bearish GartleyThe ideal bearish Gartley has specific Fibonacci numbers that define the pattem. Again, the .786 retracement of the XA is the most important number in the potential reversal zone. The projection of either 1.27 or 1.618 should converge in the same area as the other two important numbers. A bearish Gartley occurs frequently and should be considered a significant reversal pattem.ideal bearish gartley: sell at d!The beauty of this pattem is that several numbers converge at the .786. Also, the completion of the AB=CD will clarify the set-up and help determine the execution point.[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [ 53 ] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95]