The Bullish Gartley Pattern

What is a Bullish Gartley Pattern?

First introduced in 1935 by trader H.M. Gartley in his book, “Profits in the Stock Market”
Contains an bullish ABCD pattern preceded by a significant high or low (point X)
A visual, geometric price/time pattern comprised of 4 consecutive price swings, or trends—looks somewhat like an “M” on price chart.
A leading indicator that helps determine where & when to enter a long (buy) position, or where to exit a short (sell) position.

Why are Bullish Gartley Patterns important?

Helps identify higher probability buying opportunities in any market (forex, stocks, futures, etc.), on any timeframe (intraday, swing, position).
Reflects convergence of Fibonacci retracement and extension levels at point D suggesting stronger level of support, thus higher probability for market reversal.
X-to-A ideally moves in the direction of the overall trend, in which case the move from A-to-D reflects a short-term correction of established uptrend.
May also indicate trend reversal when found near bottom of downtrend channel, or as a reaction coming of significant support at point X.
May provide a more favorable risk vs. reward ratio, especially when trading with the overall trend.

So how do I find one?

Each turning point (X, A, B, C, and D) represents a significant high or significant low on a price chart. These points define four consecutive price swings, or trends, which make up each of the four pattern “legs.” These are referred to as the XA leg, AB leg, the BC leg, and the CD leg.