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Thread: Trading Gartley negation

  1. #1
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    Smile Trading Gartley negation

    Hi,

    I want to ask how many of you is trading negation of patterns, and how you do it?

    I know from theory that is possible to trade negations of patterns but i never have been able to do that because i didnt know how, but lately I have made some assumptions from my experience and observations and i have come up with idea how to trade gartley negations and I want to know what you are thinking about it.

    I will use example of ideal bullish Gartley pattern on GBPUSD M1 which I have traded and get hit SL


    so this is our bullish gartley, I haved entered BUY trade on FE100 (AB=CD), set SL 1 pips below X

    but I have been stopped out when price breaks last low, and here comes my strategy for negations which is only working for perticular case like above, when pattern is nice and symmetrical, but price breaks SL levels fast without hesitation, NOW i set SELL pending at exacly same level as last order FE100 and wait for price to pullback

    price did come back and opens SELL trade, I use 38,2fibo ret level to set SL for negation trade( from my observation it is very conservativ level, maybe it should smaller), now I use the same MM rules for negations as for normal pattern trading, so i set up TP accordingly to achieve RR 1:3, we need to be very agresive with setting BE so set it as soon as price breaks last fresh low, and here is result



    So my strategy for trading Gartley negation:
    - pattern has to be almost ideal, symmetrical
    - price has to fall trought PRZ and hit SL fast without hesitation
    - entry at exactly same level as last order FE100 (AB=CD)
    - SL at 38,2fibo ret of pattern
    - TP accordingly to your RR (my advice for 1:3)
    - BE after price break fresh low/high
    - if price did pullback but didn't open our trade we cancel our pending

  2. #2
    ole
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    What I do is - when pattern is complete enter trade with a tight stop.

  3. #3
    Wizard
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    Hi drapichrust,
    For me personally the fact that you start this subject means that you are very SMART in your harmonics education. This is actually not the first topic that you start topic that has a well documented structure and rises an interesting topic. Thanks for this. I am sure many will find it useful.

    From my experience trading failure patterns is not an easy job and i think it is very difficult (if possible at all) to achieve same results like when trading harmonics in a "book way".
    Beautiful bullish Gartley patterns are often formed at the end of the up trend, tempting traders for another long entry. Failure of such pattern means often strong price fall.

    However Short entry on X level (after taking SL) in such case is not good option for me. No edge.
    I like to wait for the bearish 121 pattern to form and only than trade "Gartley failure" combined with this 121 bearish scenario.
    There was a video on this available here: http://www.youtube.com/watch?v=3Wcs_GXmAlI

    Anyway, it's just the way i like to approach it. You may get better results with your approach. At the end so much depends on the MM and Psycho.
    thanks again.

  4. #4
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    Smile

    Thx Kor,

    now iam trading on demo so i can test this strategy and maybe we can learn something usefull,
    yesterdays case on EURUSD M1, nice gartley has failed so i set up SELL accordingly to my strategy

    position has been open nicely but i made mistake by not looking on bigger TF where also bullish gartley has been completed, I was little scared about negation position, I assumed that bigger pattern has more strengh so i closed position on BE.
    Bigger Gartley bounced idealy from FE100 and make nice retrace to 38,2, so for me its succes pattern, but he failed to rally further and he break harmonic level.


    If i would leave SELL position it would hit my TP. What I should do in this case?

    1. trade small gartley, get hit SL; trade bigger gartley get hit BE; trade negation of small gartley and hit TP

    2. trade small gartley get hit SL; trade bigger gartley get hit BE, do not trade negation of small gartley


    During night nice bullish Gartley has completed but failed on AUDUSD H1, this can mean very strong drop specially when Aussie has been rally for almost a month without any major retracement, Iam setting up for trading his negation, SELL at 1.0717 SL 1.0766 (48pips) TP 1.0571 (146pips)





    drap
    Last edited by drapichrust; 02-10-2012 at 09:37 AM.

  5. #5
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    update: i had canceled pending order on AUDUSD, price made a pullback but didn't open order, and dropped below fresh low = cancel order

  6. #6
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    to revive little bit subject of trading negation of gartley recent example on usdchf M30/H1


    take notice to PA in PRZ and above harmonic lvl of FE100


    and possible ending of this case


    1st position SELL -19pips
    2nd position BUY +63pips
    =====================
    overall outcome +44pips

    i didnt trade it, but will try to catch one of these

    regards
    drap
    kor4x and bialko991 like this.

  7. #7
    Wizard
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    for trading Gartley and Gartley pattern negations this Harmonic Grid trading system described by Ziemo seems to be good idea to consider -> Harmonic Grid Trading System - Volcano Setup

    as always pattern location is very crutial. People focus too much on D point, where as X point is equally if not more important.
    Samtastico likes this.

  8. #8
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    todays failed gartley on AUDUSD M15, wanted to trade negation but PA after breaking harmonic lvl was little to slow, at the end it worked out but without me
    scenario: break-test lvl from other side(resistance become support)-bounce
    Trading Gartley negation-negacja-gartley-audusd-m15.png
    kor4x likes this.

  9. #9
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    Hi,

    I couldn't help but notice this thread and the charts. If I could add my thoughts on this:

    1) The gartley you see can be better filted by triangles. Refer to the image below (where I used your first chart and traced triangles from AC and XB

    2) You can confirm a bullish move if price would have cut through the AC trend line, but that didn't happen.

    3) Therefore it is a 'failed gartley' as you'd call it. But from triangles we see a bearish move. So entry price would be where the first candle closed completely outside the trend line XB (or apprx. 1.5604) [GREEN LINE in the chart]

    4) Stops would have been point C or the convergence point of the triangles. [RED LINE in the chart]

    5) Target price would be half the pip movement from XA, which is:

    1.5615-1.5585 = 0.003 (3 Pips); 0.003/2 = 0.0015 (1.5 Pips). [ORANGE LINE in the chart]

    Because it is bearish, we substract 0.0015 from entry price, which is 1.5604 - 0.0015 = 1.5589

    Trading Gartley negation-failed-gartley.jpg

    Your comments?

  10. #10
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    drapichrust: My thoughts on your gartley chart is depicted in the picture below:

    Trading Gartley negation-audusd-15m.jpg

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