USDJPY Gartley Harmonic Pattern
You might have heard of Harmonic patterns in Forex before and wondered what they are. In this post I’m going to show you a Gartley Harmonic Pattern and something interesting with Pitchforks.
First you need to know that a Gartley Harmonic pattern is one of many harmonic patterns that have been introduced over the years. In fact, a gentlemen by the name of Harold McKinley Gartley introduced patterns in 1932, though it wasn’t until 1935 when he named a pattern after himself.
All harmonic patterns have 5 points to them, which are X, A, B, C and D. There are rules about each pattern is identified in the charts. For example, a Gartley pattern has the following rules:
- AB leg should retrace about 61.8% of leg XA
- BC should retrace 38.2% – 88.6% XA
- CD is at least a 78.6% retracement of leg XA
If you draw the harmonic pattern in TradingView, it will add those numbers you see on the chart.
Gartley Harmonic Example
Now that you have learned about what a Gartley is, and how it’s defined, let’s go now and see a real life example.
This USD/JPY Gartley Harmonic formed on February, 22, at 19:00 UTC.
What you might also notice is that there is a Pitchfork on top of the Harmonic pattern.
Take a look at the candles that have formed at the time the above idea was published on TradingView. Notice that they ranged in between the pitchfork lines? Interestingly the pitchfork lines are set up on Fibonacci levels. If you are reading this post after February 23, 2021, do take note what happened after this idea was published. Did the candles stay within the pitchfork for a while afterword? Well, I can’t predict the future, but a lot of times you will see prices reverse in the area of various levels of the pitchfork.
When patterns like this form, and you use a pitchfork as well, then you could use it to help you identify entries and exits in trades for days, week or sometimes months into the future. As with anything in the Forex market, nothing is guaranteed, but it can be used as another tool to help you more clearly see what’s going on in the market.
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