The Gartley Pattern: Structure, Ratios and Potential Reversal Zone
A step-by-step guide to the Gartley harmonic pattern: the XABCD legs, the key Fibonacci ratios, bullish and bearish versions, the PRZ and invalidation.
Key takeaways
- The Gartley is a five-point XABCD harmonic pattern.
- Its defining ratios are a B point near the 0.618 retracement of XA and a D point near the 0.786 retracement of XA.
- The pattern completes inside the XA leg, so D does not exceed X.
- A bullish Gartley completes at a low; a bearish Gartley completes at a high.
- A move beyond X is a common, objective invalidation.
The Gartley pattern is named after H. M. Gartley, who described a related structure in his 1935 book on stock market profits. The Fibonacci ratios commonly associated with it today were added later by other analysts.
It is often the first harmonic pattern traders learn, because its ratios are well documented and it clearly illustrates the XABCD framework. This guide explains each leg, the commonly cited ratios and how to approach risk.
The five points
A bullish Gartley begins with an advance from X to A. Price then retraces to B, rallies to C and declines to D, where the pattern completes. A bearish Gartley is the mirror image, beginning with a decline from X to A and completing at a high.
The pattern resembles an M shape when bullish and a W shape when bearish.
- X to A: initial impulse
- A to B: retracement of XA
- B to C: retracement of AB
- C to D: final leg completing near 0.786 of XA
The commonly cited ratios
The B point is typically near the 0.618 retracement of XA. This is the ratio most often used to distinguish a Gartley from other harmonic patterns.
The C point is a retracement of AB, commonly cited in a range between 0.382 and 0.886.
The D point is typically near the 0.786 retracement of XA. The CD leg often extends between 1.272 and 1.618 of BC, and AB and CD are often of similar length. These measurements together form the potential reversal zone.
- B: about 0.618 of XA
- C: 0.382 to 0.886 of AB
- D: about 0.786 of XA
- CD: 1.272 to 1.618 of BC
- AB roughly equal to CD
Drawing a Gartley step by step
First, identify a clear impulse leg as XA. Then check whether the pullback to B lands near 0.618 of XA. If it retraces much less or much more, the structure is probably not a Gartley.
Next, measure the BC leg against AB. Finally, project the possible D point using the 0.786 retracement of XA and the BC extension. Where these measurements overlap, the PRZ is formed.
Keep a written record of the ratios you measure. It is easy to adjust swings subconsciously until a pattern fits.
The potential reversal zone
The PRZ for a Gartley is centred around the 0.786 XA retracement, supported by the BC extension and the AB equals CD projection. When these measurements cluster tightly, the zone is well defined. When they spread out, the pattern is less precise.
The PRZ is an area to observe. Many practitioners wait for a reaction, such as a short-term break of structure away from the zone, before considering the pattern active.
Invalidation
Because the Gartley completes inside the XA leg, a move beyond X means the structure has become something else, possibly a different harmonic pattern or a continuation of the prior move. A close beyond X is therefore a common invalidation.
Some traders use a tighter invalidation just beyond the PRZ. Position size should be calculated from the chosen distance, so the amount at risk remains consistent.
Reference targets
Common reference levels after a Gartley completes include the 0.382 and 0.618 retracements of the AD leg, and point C. These are planning references for evaluating potential reward relative to risk, not predictions.
Comparing them with support and resistance zones gives a more complete picture.
A hypothetical bearish Gartley
Imagine a four-hour chart where price declines sharply from X to A. It then bounces to B, near the 0.618 retracement of XA, falls to C, retracing about 0.5 of AB, and rallies again. The analyst projects D near the 0.786 retracement of XA, where a BC extension of about 1.27 also falls. This creates a PRZ above current price.
The plan states that the analyst will watch for a lower high and a short-term break of structure inside the PRZ before treating the pattern as active. Invalidation is a close above X. Reference levels are the 0.382 and 0.618 retracements of the AD leg.
If price reaches the PRZ and reverses, the analyst records the reaction. If it continues through X, the pattern is invalidated and the analyst notes what structure, if any, replaced it.
Gartley compared with other harmonics
Comparing the Gartley with its relatives clarifies its defining features.
- Gartley: B about 0.618, D about 0.786 of XA
- Bat: B shallower, D about 0.886 of XA
- Butterfly: B about 0.786, D beyond X
- Crab: D extends furthest, near 1.618 of XA
Studying the Gartley responsibly
Begin by measuring past examples without trading them. Record each ratio and note where your measurements deviated from the textbook values. This builds awareness of how much subjectivity enters the process.
Combine Gartley study with support and resistance, market structure and a clear risk plan. Our harmonic patterns introduction and risk management guide are good companions to this article.
Limitations and good practice
Ratios rarely match exactly, and swing selection is subjective. The Gartley is best studied as one input combined with market structure and key levels, not as a standalone system.
Collect examples, including ones that failed at the PRZ, and review them. Your own record will show how the pattern behaves in the markets you study.
Frequently asked questions
This content is for educational purposes only and is not financial advice.
