Gartley 222 Pattern #1

Gartley 222 Pattern #1

1. Price swing from A to B will be equal to CD 60% of the time. The other 40% of the time CD will be 1.27 or 1.618 of AB.

2. The BC price swing will be .618 or .786 of the AB move. In very strongly trending markets the BC swing will only be at the .382 retracement.

3. If the AB swing is very strong, it will give a good clue as to what to expect on the BC move.

4. The time bars from point A to B should be equal to the CD time bars about 60% of the time. The other 40% of the time these time periods will expand to 1.27 or 1.618 of AB.

5. Should the CD price swing have a price gap or a very wide range bar, the trader should interpret this as a sign of extreme strength and expect to see price expansions of 1.27 or 1.618.