The Gartley Pattern

The Gartley Pattern from Wave Trader India on Vimeo.

The Gartley pattern was outlined by H.M. Gartley in his book Profits in the Stock Market, published in 1935. Although the pattern is named "The Gartley," the book did not discuss specific Fibonacci retracements!

It was not until "The Harmonic Trader" was released that the specific retracements of the B point at a .618 and the D point at a .786 were assigned to the pattern.

There are others who have assigned Fibonacci retracements to this framework. However, they use a variety of Fibonacci numbers at the B and D points.

Despite these variations, the Fibonacci retracements that yield the most reliable reversals are the .618 at the B point and the .786 at the D point. Furthermore, the pattern should possess a distinct AB=CD pattern that converges in the same area as the 0.786 XA retracement and the BC projection (either 1.27 or 1.618).

The most critical aspect of the Gartley is the B point retracement, which must be at a 0.618 of the XA leg.

The ABC Pattern

The ABC Pattern from Wave Trader India on Vimeo.

The basic pattern 'ABC' wave is first described in a book by H.M. Gartley's 'Profits in the Stock Market' (1935). This pattern signals a (T)rend and a (R)etracement and resumption of (T)rend, like a lightning bolt pattern. This pattern is called 'ABC Wave' or '1-2-3 pattern' in technical analysis world.



ABC Waves forecasts market turning points and targets for traders. ABC Waves pinpoint important pivots with highs/lows and key trend zones for correction waves.



The key points in ABC wave are detecting or correctly finding 'A', 'B', 'C' pivot points in a chart. These key Pivots are searched for various Pivot Strength levels and used for its correction waves. Once 'A', 'B', 'C' points are determined, a fiblevels algorithm is applied to determine the confluence level of 'D'. This area is called 'Potential Reversal Zones' (PRZ).



The area where Pivot 'C' is usually measured as Fib Retracement percentage (38.2% to 61.8%) of 'AB' leg. The projection from 'C' is measured also part of fib-ratios of 'AB' and 'BC' legs. Some traders use the confluence of these ratio levels as the key areas for profit taking.

What is an Option Worth?

What is an Option Worth? from Wave Trader India on Vimeo.

The video explains option pricing in an easy-to-understand, intuitive manner – along with a complete discussion of volatility, especially implied volatility. From there the author discusses the VIX – what it is and what it truly represents – and then talk a little about the importance of implied volatility to option trading.



For more information on Options visit http://masteroptions.com