September 10, 2010

Smells like a Gartley Pattern

Hi! I identify a Gartley Pattern on GBP/USD So, I expect buy if the point D forms. If not forms I pass the trade. In the chart below We can see fibonacci numbers works property. First Leg X to A have a 61.8% retracement and forms point B. A point to B point presents another 61.8% retracement and forms point C... All of this just means one thing: Smells like a Bullish Gartley. But this one can be negated for many factors. Tomorrow is Friday (America Time), and the point D can be forms. But, one of my rules says: Not open positions on Friday.
Gartley be negated if the point D not forms... How can know this? First, study the zone of D point. If the price forms a gap, or not stop near our Potencial Reversal Zone (PRZ). Pass the trade. Only take trades if you afford the consequences. Weekend can offer us many suprises.

You can see a yellow squares draw on stochastics...
Stochastics ever follow the Price action. Many novices Traders loss because they think: Price follows stochastics. Have a happy weekend everyone!

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