SAUDIA DAIRY AND FOODSTUFF CO
A "bullish Gartley" refers to a specific pattern that traders look for in financial markets, particularly in technical analysis, to potentially predict future price movements. It's named after its creator, H.M. Gartley, who introduced it in his book "Profits in the Stock Market" in 1935.
The bullish Gartley pattern is a harmonic pattern that consists of four distinct price swings or legs. These legs are labeled XA, AB, BC, and CD. The pattern typically forms after a significant downtrend and indicates a potential reversal to the upside.
Here's a breakdown of the legs of a bullish Gartley pattern:
1. XA: This is the initial leg of the pattern and represents the initial impulse move downward.
2. AB: After the XA leg, there is a retracement upward, forming the AB leg. This retracement should ideally reach a Fibonacci level of either 0.618 or 0.786 of the XA leg.
3. BC: Following the AB leg, there is another downward move forming the BC leg. This leg typically retraces 0.382 or 0.886 of the AB leg.
4. CD: Finally, the pattern completes with the CD leg, which is an extension of the BC leg. The CD leg should ideally reach the 1.272 or 1.618 Fibonacci extension of the BC leg.
When the CD leg completes near the Fibonacci extension levels, it suggests that the pattern is complete and a bullish reversal may occur. Traders often look for additional confirmation signals such as candlestick patterns, volume analysis, or other technical indicators before entering a trade based on the bullish Gartley pattern.
As with any technical analysis tool, it's important to remember that the bullish Gartley pattern is not foolproof and should be used in conjunction with other analysis methods and risk management strategies.
The bullish Gartley pattern is a harmonic pattern that consists of four distinct price swings or legs. These legs are labeled XA, AB, BC, and CD. The pattern typically forms after a significant downtrend and indicates a potential reversal to the upside.
Here's a breakdown of the legs of a bullish Gartley pattern:
1. XA: This is the initial leg of the pattern and represents the initial impulse move downward.
2. AB: After the XA leg, there is a retracement upward, forming the AB leg. This retracement should ideally reach a Fibonacci level of either 0.618 or 0.786 of the XA leg.
3. BC: Following the AB leg, there is another downward move forming the BC leg. This leg typically retraces 0.382 or 0.886 of the AB leg.
4. CD: Finally, the pattern completes with the CD leg, which is an extension of the BC leg. The CD leg should ideally reach the 1.272 or 1.618 Fibonacci extension of the BC leg.
When the CD leg completes near the Fibonacci extension levels, it suggests that the pattern is complete and a bullish reversal may occur. Traders often look for additional confirmation signals such as candlestick patterns, volume analysis, or other technical indicators before entering a trade based on the bullish Gartley pattern.
As with any technical analysis tool, it's important to remember that the bullish Gartley pattern is not foolproof and should be used in conjunction with other analysis methods and risk management strategies.