Forex : Trading The Gartley Pattern

Saturday, March 28, 2015 Posted by Ayman Khlifat 0 comments

Once upon a time, there was this insanely smart trader dude named Harold McKinley Gartley.

He had a stock market advisory service in the mid-1930s with a huge following. This service was one of the first to apply scientific and statistical methods to analyze the stock market behavior.

According to Gartley, he was finally able to solve two of the biggest problems of traders: what and when to buy.

Soon enough, traders realized that these patterns could also be applied to other markets. Since then, various books, trading software, and other patterns (discussed below) have been made based on the Gartleys.

Gartley a.k.a. “222” Pattern

The Gartley “222” pattern is named for the page number it is found on in H.M. Gartleys book, Profits in the Stock Market. Gartleys are patterns that include the basic ABCD pattern we’ve already talked about, but are preceded by a significant high or low.

Now, these patterns normally form when a correction of the overall trend is taking place and look like ‘M’ (or ‘W’ for bearish patterns). These patterns are used to help traders find good entry points to jump in on the overall trend.



















A Gartley forms when the price action has been going on a recent uptrend (or downtrend) but has started to show signs of a correction.

What makes the Gartley such a nice setup when it forms is the reversal points are a Fibonacci retracement and Fibonacci extension level. This gives a stronger indication that the pair may actually reverse.

This pattern can be hard to spot and once you do, it can get confusing when you pop up all those Fibonacci tools. The key to avoiding all the confusion is to take things one step at a time.

In any case, the pattern contains a bullish or bearish ABCD pattern, but is preceded by a point (X) that is beyond point D. The “perfect” Gartley pattern has the following characteristics:

1. Move AB should be the .618 retracement of move XA.
2. Move BC should be either .382 or .886 retracement of move AB.
3. If the retracement of move BC is .382 of move AB, then CD should be 1.272 of move BC. Consquently, if move BC is .886 of move AB, then CD should extend 1.618 of move BC.
4. Move CD should be .786 retracement of move XA.


Gartley Mutants: The Animals

As time went by, the popularity of the Gartley pattern grew and people eventually came up with their own variations.

For some odd reason, the discoverers of these variations decided to name them after animals (Maybe they were part of PETA?).Without further ado, here comes the animal pack…

The Crab



















In 2000, Scott Carney, a firm believer in harmonic price patterns, discovered the “Crab”.

According to him, this is the most accurate among all the harmonic patterns because of how extreme the Potential Reversal Zone (sometimes called “price better reverse or imma gonna lose my shirt” point) from move XA.

This pattern has a high reward-to-risk ratio because you can put a very tight stop loss. The “perfect” crab pattern must have the following aspects:

1. Move AB should be the .382 or .618 retracement of move XA.
2. Move BC can be either .382 or .886 retracement of move AB.
3. If the retracement of move BC is .382 of move AB, then CD should be 2.24 of move BC. Consquently, if move BC is .886 of move AB, then CD should be 3.618 extension of move BC.
4. CD should be 1.618 extension of move XA.

The Bat



















Come 2001, Scott Carney founded another Harmonic Price Pattern called the “Bat.” The Bat is defined by the .886 retracement of move XA as Potential Reversal Zone. The Bat pattern has the following qualities:

1. Move AB should be the .382 or .500 retracement of move XA.
2. Move BC can be either .382 or .886 retracement of move AB.
3. If the retracement of move BC is .382 of move AB, then CD should be 1.618 extension of move BC. Consquently, if move BC is .886 of move AB, then CD should be 2.618 extension of move BC.

4. CD should be .886 retracement of move XA.

The Butterfly



















Then, there is the Butterfly pattern. Like Muhammad Ali, if you spot this setup, you’ll surely be swinging for some knockout-sized pips!

Created by Bryce Gilmore, the perfect Butterfly pattern is defined by the .786 retracement of move AB with respect to move XA. The Butterfly contains these specific characteristics:

1. Move AB should be the .786 retracement of move XA.
2. Move BC can be either .382 or .886 retracement of move AB.
3. If the retracement of move BC is .382 of move AB, then CD should be 1.618 extension of move BC. Consquently, if move BC is .886 of move AB, then CD should extend 2.618 of move BC.

4. CD should be 1.27 or 1.618 extension of move XA.


Ayman Khlifat on Twitter : @Aymankkhlifat
Email : Aymanfxsignals@yahoo.com


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Silver daily chart possible H&S is still forming

Sunday, March 22, 2015 Posted by Ayman Khlifat 0 comments

Hello Traders!

The daily chart on Silver is showing that potential head and shoulders pattern below the strong trend-line


Check The Chart













More updates to come ...

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Trade Setup - AUDUSD is breaking out of its 6-month bear channel

Friday, March 20, 2015 Posted by Ayman Khlifat 0 comments

AUDUSD is breaking out of its 6-month bear channel















Trade Setup : Buy above 0.7740 stop @0.7640 target @0.8012


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I Am Focusing On $Gold - Reasons

Saturday, February 21, 2015 Posted by Ayman Khlifat 4 comments

Hello Traders!

- The market for gold coins and bars in Europe is now twice as large as that of the United States, and similarly on par with those of China and India. In addition, the India Trade Ministry is said to be seeking to cut the gold import tax from 10 percent to 2 percent.
- With new global mined gold supply averaging around 258 tonnes per month, and with 255 tonnes of gold withdrawals from the Shanghai Gold Exchange in January, China is effectively consuming all of the world’s new mined supply.
- In 2014 governments added 477.2 metric tonnes to their reserves, the second-biggest increase in 50 years and 17 percent more than the previous year. Furthermore, central banks have added to gold reserves for the past five years, representing a reversal from two decades of selling. For investors considering adding bullion to their portfolio, gold just triggered this long-term buy signal (only the fourth one to show up in the past 10 years as illustrated by the technical chart shown below). The prior signals have come in 2005, 2007 and 2009, and each time gold rallied thereafter.



But ,Keep in mind that : Gold traders are bearish for the first time in three months on concerns about a stronger dollar and weakening demand from China’s slowing economy.

Always Remember : The market is not an ATM machine , you have to manage your risk actively. $Study.


Please feel free to share your innermost thoughts/ideas and concerns with Aymankhlifat.com community. Reasons welcome as always.
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The Greek Bailout Explained: How to Protect Yourself - Two Scenarios

Thursday, February 19, 2015 Posted by Ayman Khlifat 0 comments


Greece's bailout expires at the end of this month. Athens needs to either secure a fresh bailout from its Eurozone lenders or find an alternative source of financing; otherwise, it is at risk of bankruptcy. Ahead of the bailout deadline on 28th February, Greece and the Eurozone finance ministers (known as the Eurogroup) have held talks, but a compromise has not been achieved.

How this may impact markets:
To help you plan your trading strategy around this important event, I've outlined some potential scenarios Greece may face in the coming days:

Two scenarios: 

Scenario 1: Greece doesn't secure a deal: The next meeting between Athens and the Eurogroup takes place on Friday 20th February. If no deal is reached, then we could see volatility jump and the EUR sell off alongside European stocks.

Scenario 2: Greece secures an extension to its bailout: This would be the most risk-positive outcome in the short term as it would ensure that Greece has funds for the coming months. We may see a rally in the euro and European stock markets on the back of an announcement.


Check My trade setup on $Gold Here : Trade Setup on $Gold

Ayman Khlifat on Twitter : @Aymankkhlifat
Email : Aymanfxsignals@yahoo.com

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When Will The Fed Raise Rates? - Here's an idea

Saturday, February 14, 2015 Posted by Ayman Khlifat 1 comments

I am certain that Fed will not increase rate in June. USD is at all time high and every central bank around the world is reducing their rates. Raising US rate would make dollar even stronger and that will be a disaster for the stock market. And as the article says you raise interest rates to protect against inflation but where is the inflation?

Oil prices are low now and will remain low for foreseeable future. So inflation from commodity prices is not in cards. Employment picture is improving but wages are not increasing to a level where employees can switch jobs every 6 months for better pay like in old time.

Most likely there will be no rate increase this year.

Please feel free to share your innermost thoughts/ideas and concerns with Aymankhlifat.com community. Reasons welcome as always



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USDJPY still aiming higher next week

Sunday, December 21, 2014 Posted by Ayman Khlifat

It is a busy week for Japanese economic reports.  Two key take-aways are likely.  First, the data is likely to show a little improvement in the real economy after a poor start to Q4.   Second, the weakness of the yen is unlikely to have filtered into higher consumer prices yet.   The core CPI, when adjusted for the sales tax hike, will slip further below 1%.  If the BOJ cannot find some way to adjust its views to look past the drop in oil prices, then the market will expect it to do more as the inflation target becomes more elusive ..Anyway looks like USDJPY to re-test 120.78/92 and maybe higher next week as i see .

Note this setup and target lvl below .Good luck 














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The full Forex Performance Results for 2013/2014 are updated ,You can email me ( Aymanfxsignals@yahoo.com) to get your copy 
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Ayman Khlifat on Twitter @aymankkhlifat

Email : Aymanfxsignals@yahoo.com





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The full Forex Performance Results for 2013/2014 are updated

Sunday, December 7, 2014 Posted by Ayman Khlifat

Hello all .


The full Forex Performance Results for 2013/2014 are updated ,You can email me ( Aymanfxsignals@yahoo.com) to get your copy .


Ayman Khlifat on Twitter : @Aymankkhlifat
Email : Aymanfxsignals@yahoo.com


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