Gartley 222 Pattern #7

Gartley 222 Pattern #7

1. The time frame between X and point A will be between 5 and 13 time bars (i.e., 5 min., 30 min., daily). On rare occasions 21 time bars.

2. This is a reversal or extension pattern. Expect prices to reverse at point A.

3. If the dollar amount between the 1.27 price and 1.618 price is too great, the trader should wait for more confirmation (i.e., doji or hammer or another indica tor) of an exhaustion move.

4. The thrust down from 1 to A will give a good clue what to expect. If prices get to the 1.27 within 5 bars or less prices will most probably extend to the 1.618.

5. There should be no price swings between point 1 and point A. If there is a price swing Pattern #6 becomes a Gartley 222 pattern.

6. This is a very important pattern when day trading because point X is often the opening price of the day.

7. When prices react in the direction of the trade, the protective stop should be raised to break even.

8. Profit objective should be the total distance between points 1 and A.