Gartley Pattern Trading Rules: Entry, Target, Stop-Loss

By Easy Trade في Jul 24, 2026

The Gartley pattern is based on Fibonacci numbers and ratios. It helps traders identify reversal levels and is the most common harmonic pattern shape — many technical analysts use the Gartley pattern. For more, read about Cypher Harmonic Pattern Rules.

The Gartley pattern includes the AB=CD pattern in its structure, which means it’s important to study that pattern first. These patterns typically form during a correction of the broader trend and look like the letter M in the bullish version or W in the bearish version, with the swings marked by points X, A, B, C, and D.

These patterns help traders find good entry points and enter in the direction of the broader trend. They give you a lower-risk opportunity to enter the market once the pattern completes and the trend resumes.

As with many chart patterns, there’s a bullish version and a bearish version.

The Gartley pattern includes the AB=CD pattern in its structure, which means it’s important to study that pattern first.

The pattern is often called Gartley 222 because Harold McKinley Gartley first described it on page 222 of his 1935 book, Profits in the Stock Market.

Bearish Gartley Pattern Explained

The Gartley pattern shows a downtrend from point X to point A, with the price reversing at point A. Using Fibonacci ratios, the retracement level at point B should equal 0.61 of the XA leg.
At point B, the price reverses again toward point C, which should correct by 0.38 to 0.88 of the AB move.
At point D, which extends to 0.78 of the XA leg and also to 1.27–1.618 of the BC leg, the pattern is complete and sell signals appear, such as reversal candles.

Bullish Gartley Pattern Explained

The bullish Gartley pattern is the mirror image of the bearish version above and anticipates an uptrend, with several price targets once the pattern reaches completion at the D zone.

The Gartley pattern shows an uptrend from point X to point A, with the price reversing at point A. Using Fibonacci ratios, the retracement level at point B should equal 61.8 of the XA leg.
At point B, the price reverses again toward point C, which should correct by 0.38 to 0.88 of the AB move.
At point D, which extends to 0.78 of the XA leg and also to 1.27–1.618 of the BC leg, the pattern is complete and sell signals appear, such as reversal candles.

Point X is often used as the stop-loss level for the trade. These Fibonacci levels don’t need to be exact, but the closer they are, the more reliable the pattern.

Gartley Pattern Entry Point

To enter a trade, you first need to identify the pattern and then confirm it’s valid. To plot the Gartley pattern on your chart, mark the four price swings and check that each one respects its corresponding Fibonacci level.

If you have a bullish Gartley pattern on the chart, you can open a long position once these two conditions are met:

Confirm that point D reaches the 1.272 or 1.618 Fibonacci extension of the BC move.
Price has bounced upward from the 0.78 Fibonacci level of the XA leg.

When the Gartley pattern is bearish, you use the same two conditions to open a trade.

The Gartley pattern should be used alongside other signals, such as reversal candles at point D, which can serve as confirmation.

Gartley Pattern Targets

The full target for this pattern is the 1.618 Fibonacci extension of the AD move, similar to the AB=CD pattern on completion. However, there are three targets before the final one.

Target 1: B

Target 2: C

Target 3: A

Target 4: the 1.618% Fibonacci extension of the AD leg.

Gartley Pattern Stop Loss

Regardless of your preferred entry signal, it’s always recommended to use a stop-loss order. This protects you from any sudden or unexpected price moves.

If you open a buy trade for a bullish Gartley pattern, your stop-loss order should sit below point D.

If you open a sell trade for a bearish Gartley pattern, your stop-loss order should sit above point D of the pattern.

Point X is often used as the stop-loss level for the trade. These Fibonacci levels don’t need to be exact, but the closer they are, the more reliable the pattern.

Finally, some traders who use harmonic patterns confuse the Bat pattern with the Gartley pattern. So let’s take a moment to clarify the key differences between these two harmonic patterns, to make sure they’re classified and traded correctly. The difference between them comes down to Fibonacci ratios, summarized below:

Both are internal patterns, but the D leg in the Gartley pattern is a short corrective move, while in the Bat pattern it’s a long primary leg.
Point D ends up shorter than the XA leg. The two key points that distinguish the Bat pattern from the Gartley pattern are the Fibonacci ratio at point B and the Fibonacci ratio at point D. In the Bat pattern, point B usually ends at the 38% or 50% Fibonacci retracement of the XA leg. In the Gartley pattern, by contrast, point B usually ends at the 61% Fibonacci retracement of the XA leg.
Point D in the Bat pattern marks the end of an 88% correction of the XA leg, while D in the Gartley pattern is a 78% correction of the XA leg. Also, in the Gartley pattern, the AB leg is equal in length to the CD leg, which is often referred to as AB=CD.

Frequently Asked Questions

How many harmonic patterns are there?

The core harmonic patterns are 5-point patterns (Gartley, Butterfly, Crab, Bat, Shark, and Cypher). These patterns contain smaller 3-point (ABC) or 4-point (ABCD) structures. All the price swings between these points are interconnected and follow harmonic ratios based on Fibonacci.

What is the Gartley pattern?

The Gartley pattern is a harmonic chart pattern based on Fibonacci numbers and ratios that helps traders identify reaction highs and lows. H.M. Gartley laid the foundation for harmonic chart patterns in his book Profits in the Stock Market, published in 1935.

What is a harmonic pattern?

Harmonic patterns are chart patterns used as part of a trading strategy. They can help traders read price direction by pointing to possible future market moves. They form geometric price patterns using Fibonacci numbers to flag potential price changes or trend reversals.

What is classical technical analysis?

Technical analysis is a method for estimating the likely direction of financial market prices by evaluating historical price and volume data where available. The core premise of the technical approach is that market action reflects everything: everything known, or knowable, is already in the price.

How do you trade the Gartley pattern?

Typically, a Gartley pattern signals that the original trend from X to A is about to resume. Once the pattern completes, the market is expected to reverse again at D, marking the end of the correction. In a bearish Gartley, you can trade this move by opening a sell position at D. If the pattern is bullish, open a buy position instead.

[AFF-CTA: pending]

Disclaimer: This article is for educational purposes only and is not investment advice. Harmonic patterns like the Gartley pattern are analytical tools, not guarantees — Fibonacci-based setups can and do fail, and past pattern behavior does not predict future results. CFDs and leveraged trading carry a high risk of losing money rapidly due to leverage; most retail investor accounts lose money when trading CFDs. Consider whether you understand how these instruments work and whether you can afford the risk of losing your money. This page may contain affiliate links; easytradeweb may earn a commission if you open an account through them, at no extra cost to you.