What is a Gartley and how to trade them? I hope you enjoy this content. Don’t forget to click that subscribe button and hit that bell to be notified of upcoming videos. Hey everyone, Josh Martinez here with tradersagency.com. And welcome to the video. Today, we’re going to talk about Gartley’s. So what the heck is a Gartley? High level. It’s when you have an uptrend. And the distance, you can see how the markets basically U-turn at on and or around this blue level. And sometimes the market can extend so far above the blue level as it gravitates towards the blue level to form a low price, it creates a wave. That wave movement is considered a Gartley. And you can track those Gartley movements with Fibonacci.
So high level, what is a Gartley?
Now, you may say what the heck is Fibonacci’s? If that’s you, I still think you should watch this video because we’ll probably explain it into a manner to where you begin to understand. But if you would like to review, which we highly encourage, the Fibonacci sequence and learn how to trade with them, or utilize them, and incorporate them in your analysis, click on this video here. In this video, we will discuss the retracements of Fibonacci’s and the extensions of Fibonacci’s, but more importantly, how the move Fibonacci’s.
Let’s get started.
So we have this uptrend. And this uptrend, you can clearly see that when the mark comes near the low or the blue level, it begins a U-turn. Right. So market goes up, market goes up, market goes up, market goes up. Well, believe it or not. As the market begins to fall, you can bring on Fibonacci’s to increase the odds of success of finding the exact low.
When you have an uptrend, let me go ahead and draw it out. When you have the market inside of an uptrend, and this is normally what ends up happening. So you have this uptrend and the market starts out making higher highs, and higher lows, and higher highs, and higher lows. But all of a sudden, there’s this push like this. And the distance from the blue level, which is normally U-turning the market is so great that it will have a hard time falling in a straight line because the distance is so dang large. And so where probability comes in and says, okay, it’s going to come down, pull up and fall down. That movement, that one wave down is considered a Gartley. And if you know your Fibonacci’s, you can track the Gartley movement by this being the one, this being the two, this being the three, and this being the four. And when the market hits the four, which is the extension. Again, if you don’t know Fibonacci’s, go watch the other video. That normally will be the low that U-turns the market and the market heads back it.
I’m not saying that you should just buy the low price, just because it hits a Fibonacci extension on the way down. You should still wait for entry. Because that’s always a good idea. But I’m saying is it dramatically increases the odds when the market waves down. You can put on a down Fibonacci especially when it’s hitting up trend and then the market begins U-turn. You can really find these low prices to buy with scary accuracy. It’s pretty amazing.
Okay. So here is the NASDAQ daily timeframe. You can clearly see we have an uptrend and recently we’ve had a couple Gartley’s. So if I zoom in here to make it relatively straightforward, the distance, the distance, the market went from the blue level and extended all the way up. Now notice how we didn’t fall in a straight line. Notice how we formed a high, we formed a low, a little bit of a retracement. You can bring on your Fibonacci sequence, retraces and falls. Hits the 1.618. After hitting the 1.618 and coming near the uptrend line, you can dramatically increase the winning percent that the market’s going to rally. And notice how the market just does like a V-shape recovery, right? So Gartley down, hits it. We got to really focus on the reversal. Breaks that counter trend line, and then the rally towards north.
Okay. We saw it again recently on NASDAQ and this scenario where the market, the distance was so large away from the blue level, that when the market fell, it formed a high, formed a low, formed a high, and then fell and the market rallied or is currently rally. So it’s a nice way to find U-turn. Now you may say, yeah, but that’s all after the fact. Right? Okay. So one of the things I love about technologies is that you can track things. So leave page. Let’s see if it pulls it up.
Okay. So this is tradingview.com. Tradingview.com gives us the ability to share trading ideas and publish them for the whole world to see. So here we go. So this was the idea that we posted. Today’s date is May the 25th, 2021, which we’re recording. This was posted on May 13th. And so you notice that on these interactive charts, and this is a publication, which means we posted this, made this available for everyone to see. We notice that we’re tracking that U-turn. Right. We’re tracking the U-turn. And we stated that, hey, the market just hit the daily down Gartley, one, two, three, four at the up trend line. So therefore, if it’s going to U-turn, now’s the time for it to U-turn. So you go to their smaller timeframes. You look for the market to break into the buy zone, you apply your favorite entry strategy, whatever you desire on how to enter in. It’s just basically saying the downward movement is over and percentage-wise the buyers should take control.
So here’s before, here’s the before. I’m going to press the play button. And then there is the after and you can see that V-shape recovery, which is brilliant. So once again, just keep in mind Gartley’s, whenever we have an up trend, it’s when you have a down Fibonacci sequence when the trend is up. And when you can get a Fibonacci to a extension in line with an uptrend line, those are some of the best, best trades in my humble opinion. Or high winning percent U-turns. Same thing works opposite. If the market’s going down, you got a one time up Fibonacci, and the extension is near that downtrend line angle. Gives you the idea of a potential reversal. We call those Gartley’s. This is Josh Martinez. Have a wonderful day.
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