Pinpoint This Pattern
There’s more than one way to use harmonic
patterns to find likely buy/sell candidates.
by Rudy Teseo
If you’ve looked for Gartley patterns
while scrolling through your charts,
it’s more than likely that you’ve
discovered some patterns that resemble
the Gartley but slant downward rather
than upward, the way that the Gartley
setup does. This pattern — sort of
Gartley, sort of not — is known as the butterfly. Like the
Gartley, it comes in two forms, bullish and bearish.
The bullish butterfly is similar to the Gartley. However,
although the same ratios are used as the Gartley setup — 61.8,
78.6, 1.27, and 1.618 — they occur at different parts of the
pattern. This results in a point D that is lower than point X, as
can be seen in Figure 1. But I should note that this is an ideal
pattern; not all ratios will match the ideal in the real world,
even though the pattern is a legitimate butterfly.