Gartleys and Bflies

Discussion in 'Technical Analysis' started by Maverick1, Mar 7, 2003.

  1. Any traders out using gartleys, butterflies and other pattern recognition in their trading?

    Have the patterns been helpful to you?

    PM me if you don't feel like posting here.

    Thanks,
    Maverick
    :cool:
     
  2. My favorite pattern is the Texas Panhandle. Prices run up the western border, then a flat channel forms across Oklahoma, then when it starts drifting down Arkansas you go short and ride it all the way to the Gulf of Mexico.

    Only today for some reason it headed up to Minnesota.
     
  3. jester

    jester Guest

    Mav -

    I've studied the Gartley 222 pattern and several others from a book from Larry Pasavento (ha also just spoke at the NY Online Expo) I have been studying his techniques and fibonacci retracement analysis and am trying to apply it to my trading of the ES and NQ...I've often wondered why I do not read more about these techniques here on RT.

    Good trading to you...

    J-
     
  4. ZBEAR

    ZBEAR

    Yes:
    I use them in conjunction with multiple time frames and larger patterns...... that is to say;
    I do not trade them in isolation - I want to see a larger pattern -
    ie - a Wedge or H & S or another larger Gartley or Butterfly, or whatever.

    I Confirm the pattern with Fib numbers- Mainly,,,, .618 / .786 / 1.27 / 1.618
    I like to see a Confluence of Fib Numbers.

    My charts are intraday,,,, 120 / 30 / 5 / 1 minute.

    I pay attention to the Month / Week / Day charts at days end -
    just to give me a better feel for the larger market(s).

    BTW: I highly recommend the Bulkowski book 'ENCYCLOPEDIA OF CHART PATTERNS".

     
  5. opm8

    opm8

    Yep, I love Gartleys and butterflies ever since I read about them in Pesavento's book. There's some good info at longorshort.com, too. This week has massively sucked for these patterns, though since I barely saw any.

    I've found that "clean" setups are highly reliable, ie. each leg of the pattern is a one-way move to the next point w/no retracement in between.

    Also the ol' Wolfe Wave, though much less reliable is a fun one to trade. I just happened to be looking at a 1-min ES chart yesterday and saw a perfect setup, though I don't normally take 1-min trades. This one's detailed in Linda Raschke's book (no need to throw away $3000 for the real system, what a joke!) and she's right about waiting for confirmation on the entry point because it likes to wiggle around before moving. Again, yesterday's setup was "clean" and it worked to the tick.

    ---opm8
     
  6. I find your approach of not looking at the pattern in isolation very interesting... I think you probably significantly increase your edge by combining setups. I also look for confluence and across time frames.

    The major averages themselves were setup recently as gartley buys and followed through on the first reversal bar. On the Dow for ex, the reversal came after nearly tagging the .786 rt of the xa move on the gartley (those who know the pattern will recognize this), which was 7592. The bottom was at 7629. Unfortunately, not much follow through was available, but fast traders caught the upswing that came crashing into the first 0.382 resistance.

    The congestion pattern that has followed is quite amazing, faking people out. But resolution isn't far off and we should see a resumption of trend soon.

    Any thoughts on this, opm8, zbear, jester or anyone else?

    thanks for your input, I'm so glad to see that there are people who 'mean business' on this board.
     
  7. Opm8,

    I never heard of the wolfe wave, is it in Street Smarts? I was also curious about the system you're talking about. When you say this week has been bad for the pattern, was that in daily or intraday setups, or both?


    Thanks,
    Maverick
     
  8. Opm8,

    I never heard of the wolfe wave, is it in Street Smarts? I was also curious about the system you're talking about. When you say this week has been bad for the pattern, was that in daily or intraday setups, or both?


    Thanks,
    Maverick
     
  9. prox

    prox

    Problem is they are opportunistic trades. You can go a week without seeing one, or you could get 3 in one day.

    Also since all patterns somewhat subjective, if you find yourself trying too hard to look for a Gartley .. then it probably isn't one.

    Valid ones should jump out at you begging to be traded.

    Larry's claims of 70% success rate is pretty accurate from my real time observations.
     
    #10     Mar 10, 2003