Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
Here is a second discusion of a Gartley pattern failure which was previously discussed in article 17. Click here to read that article. In article 17, I showed examples of the price falling after the pattern failure. In this example I will show the price rising after the pattern failure.
The Gartley pattern is complete when the price reaches point D that is usually defined as AB=CD. This final point D can be manually set, but the automatic settings in MarketWarrior set point D to AB=CD.
On the picture below, the Gartley pattern has been applied to the Silver chart. In some cases the price will fall from point C, a percent that is represented by one of the Fibonacci ratios and then stop falling. The price of silver fell 0.618 percent down from point C and stopped falling. The price then turned up. This means the price failed to fall to point D. When the price fails to reach point D and turns up around a Fibonacci number, the price should rally. On the chart below, the price rallied after the Gartley pattern failure.
Gartley Pattern
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