Bearish Gartley

Many people use Bullish and Bearish Gartley Patterns. They are simple patterns for recognizing potential reversals in the markets. Here is how the pattern works; you will notice each point of the pattern is labeled with X,A,B,C and D. The movement from X to A is essentially showing the direction the chart should travel once the pattern forms point D. With this being a bearish pattern once point D is reached the chart will sell off.

The objective is to find where point D will be so you can buy or sell the currency, stock, future, etc... In order to do this you will need to do some simple math. To calculate point D for Bearish Gartley's you must take the high of B minus the low of A and then add the low of C (high B - low A + low C = D). Essentially AB=CD in price.

Also, to confirm point D is a harmonic area as well as the additional points on the chart (A,B,C), you should use the Fibonacci retracement and extension tool. Hence the ratios noted in the chart. For beginners you may want to google Fibonacci to get a bit of an education on the tool and how it is used.