Gartley Pattern — what it is and how to use it in trading
Definition
The Gartley pattern is a completed five-point XABCD harmonic figure where the distances between adjacent points match classic Fibonacci ratios (0.618, 0.786, and others) within an allowed tolerance. Point D of the figure is treated as a zone of likely reversal.
How it works in the builder
In the builder, gartley_bullish/gartley_bearish are boolean operands with left/right parameters (confirming the intermediate X-A-B-C-D swings) and tolerance — the allowed deviation from the reference ratios (0.08 = +-8%). The smaller the tolerance, the stricter the match to the canonical shape, and the less often the pattern is found.
What it looks like on the chart
On the chart the figure is drawn as five connected lines through points X, A, B, C, D — visually it resembles the letter M or W depending on direction. Point D is usually marked as the entry zone, with the Fibonacci ratio levels labeled nearby.
Typical use
Point D is used as an entry zone against the direction of the last C-D leg, often with an extra confirmation such as an oscillator divergence on the same bar. Typical condition: gartley_bullish == 1 combined with rsi_bullish_divergence == 1 for extra reversal confirmation.
Common pitfalls
Harmonic patterns are inherently subjective when marked up by hand — the builder recognizes them mechanically from fixed ratios, so a detected figure won't always match what a trader would draw manually. A wide tolerance produces more signals, but also more figures that only loosely resemble a canonical Gartley.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.