Trading the Harmonic Pattern with the Gartley Pattern Indicator
Welcome again! Last time we shared our pin bar indicator mt4 article. This time we will share info about the Gartley Pattern indicator. Besides price action traders, another set of traders that are successful in the forex world are the pattern traders. Such traders, with the implementation of a sound money management system, will steadily grow their account. The simplicity of these patterns is where their strength lies, but many new traders are unaware of this fact. Importantly, a pattern trader can quickly identify basic shapes that would signify a trading opportunity. And this is where knowing more about Gartley Pattern indicator is vital.
What kind of trader are you? Are you thinking of becoming a pattern trader? If that is your desire, then you can start using the Gartley Pattern indicator. Trading can be as easy as you want if you stick to your strategy. In talking about strategy, the Gartley pattern uses the fundamental Fibonacci numbers.
Another effective way to trade the forex market if you don’t want to use pattern or price action is to use Fibonacci. Today, professional traders have leveraged the Fibonacci strategy to grow their accounts exponentially because of its accuracy. If you are new in day trading then we advice to read this day trading masterclass review first. Then you you know which course you can buy to improve your day trading.
Over time, it has been proven accurate with a high level of probability in generating good outcome. What if you can combine Fibonacci and pattern strategy? Have you for a moment consider the end-result? The result is going to be explosive – simplicity plus accuracy.
Perhaps, you are contemplating, how are you going to do that? Are you going to use two different indicators on your trading chart? Well, what if you can incorporate both strategies into your system of trading. That is the result of Harmonic Patterns. So below you can read if this one make our TOP 10 MT4 indicators page or not.
Harmonic Patterns Strategy
Harmonic trading is a trading strategy where you look for reoccurring patterns that show alignment with key Fibonacci levels or numbers such as retracements and extension. Unlike other types of technical analysis you might prefer to use, the harmonic trading pattern allows you to predict future price movements instead of trading in a reactive manner. You can say that the Gartley Pattern indicator is a constituent of the harmonic trading pattern.
As stated already, the harmonic pattern is a pattern that integrates the Fibonacci ratios into its system. Due to the psychology of traders, price usually moves in a series of reversals, retracements, and extensions. Fear and greed also contribute to traders judgment if the price is cheap or expensive, which leads to price fluctuation on the chart.
The fluctuations in the market then form recurring patterns since traders’ habits usually reoccur. Therefore, this gave rise to harmonic price patterns. On the other hand, the accuracy of the Fibonacci ratios is one that is tested over time.
Trading the Gartley Pattern
The Gartley pattern is among the family of harmonic trading patterns. Like the harmonic pattern, the Gartley Pattern is visible in the trade always with traders using the Gartley Pattern indicator to find suitable setups.
However, for you to trade the Gartley pattern properly, it has to meet the necessary criteria. A valid trade is one whose retracement levels and patterns are based on the Fibonacci retracement and extension levels. H.M Gartley introduced the Gartley Pattern along with other harmonic patterns.
Trading the Gartley pattern is time-consuming; the stress of finding such a pattern can be hectic for anyone. However, with the Gartley indicator, you can eliminate that manual method of finding Gartley patterns. Getting the indicator is quite accessible since it is available online. All you need is to download the Gartley Pattern and ensure you place in on the right indicator directory.
Finally, you can place it on your chart, and the indicator will find the Gartley pattern without any effort. While no changes to the settings are required; just place it on the chart and select the timeframe you want. Then the indicator will do the work by generating the sell and buy signals once it spots a Gartley pattern.
Furthermore, if you did not find a pattern on a particular timeframe, you can switch from one timeframe to another. However, everything depends on the timeframe and your trading style if you want to use the Pattern indicator. You can trade the gartley pattern with some off the proven best forex indicators.
Drawbacks to Trading the Gartley Pattern
No particular trading system is 100% guaranteed; the same applies to the Gartley pattern. It has certain traps and loopholes, which traders can fall when trading. For a moment, don’t think it is only applicable to the Gartley Pattern because all types of harmonic trading patterns have loopholes and traps.
You should use the tool to help identify the Gartley pattern since these patterns are specific to the Fibonacci levels. However, hardly can you see a perfect Gartley pattern that is up to the standard you have to imagine. Because of this, the view of the Gartley pattern is subjective for each trade. Nevertheless, using a Gartley indicator can be of advantage when looking for such a pattern.
Another issue is that most harmonic and Gartley patterns are reversal patterns. Most times, you can consider it as a retracement pattern. Hardly can any trader know if the price is correcting itself or making a reversal. Regardless of the scenario might be, you should not ignore the trend – never trade against the trend. If you trade the Gartley pattern in isolation with the market trend, you will end up losing trades.
Some traders rely on the Harmonic pattern due to its risk-to-reward ratio. Nevertheless, that shouldn’t be the priority if you want to trade with the Gartley pattern. Remember, there are other types of Harmonic patterns.
Final Words On Gartley Pattern Indicator
Trading requires accuracy and harmonic patterns are specific patterns in trading. However, with the introduction of the Gartley Pattern Indicator, you can accurately trade the forex market. It is where the strength of the indicator lies; it is in its accuracy.
Another importance of the Gartley pattern is its tight stop losses. Due to the precise turning points, you have the freedom to set tight stop losses that can help in generating a healthy risk-reward ratio.
The indicator used for the MT4 platform is a useful tool if correctly applied. It does a perfect job of pointing in the right direction. All you need is to drop the indicator in an open chart window and choose your timeframe.
Besides this indicator, we have other amazing tools and indicators to make your trading profitable. You can use them for your price action and pattern trading strategy. Importantly, they work on all timeframe with excellent results.
What’s your experience with the indicator? Let us know how you interacted with it in the comment section or read other reviews on our best mt4 indicators website.