Variations of Gartley Pattern Explained
As you have demonstrated in our research, each pattern will give you absolutely different performance per each symbol and per each timeframe. To meed this need, the patterns in Optimal Turning Point Pattern Scanner is modifiable. This is simple tutorial demonstrating how to create variations of Gartley Pattern.
1) Gartley Pattern with 0.618 shape ratio
Gartley pattern with 0.618 ratio can be expressed in two lines:
Structure – N: 3, C0: 0.618 to T0: 3
Ideal Ratio – S0: 1.272, S1: 0.382 -0.886, S2: 0.618
What does above two lines say ? Here is detailed description.
- N: 3 ==> This pattern consists of 3 small triangles.
- C0: 0.618 to T0: 3 ==> The ratio of big triangle made up from first three small triangle is 0.618.
That is it. Now ideal ratio part describe the ratio of each small triangle inside the big triangle.
- S0: 1.272, S1: 0.382 -0.886, S2: 0.618 ==> ratio of first small triangle is 1.272 and ratio of second small triangle is between 0.382 and 0.886. Finally, ratio of third triangle is 0.618.
I hope you are following up here. Now next, you want to fine tune your Garltey pattern because you believe 0.650 of overall ratio and the 1.618 ratio can perform better (= better profit). So how do we create new pattern with 0.650 overall ratio with 1.618 ratio (=ratio of first triangle). It is as simple as that.
Structure – N: 3, C0: 0.650 to T0: 3
Ideal Ratio – S0: 1.618, S1: 0.382 -0.886, S2: 0.618
- C0: 0.650 to T0: 3 ==> Now, overall shape ratio is 0.650 instead of 0.618.
- S0: 1.618, S1: 0.382 -0.886, S2: 0.618 ==> We have changed first rato to 1.618 from 1.272.
What is even more ? You want to add one more triangle to Gartley Pattern structure. So you want to have four triangles instead of three triangles. It is simple and easy to do so.
Structure – N: 4, C0: 0.618 to T0: 3
Ideal Ratio – S0: 1.618, S1: 0.382 -0.886, S2: 0.618, S3: 0.382-0.886
- N: 4 ==> now we have four triangles
- S0: 1.618, S1: 0.382 -0.886, S2: 0.618, S3: 0.382-0.886 ==> this line ensure that we have ratios for each of four triangle. Our last triangle will have the ratio between 0.382 and 0.886.
This article demonstrates the application of X3 pattern language ( = profit pattern language). In the Optimal Turning Point Pattern Scanner, you have the full freedom to create any pattern. You simply choose more profitable pattern for your trading. That is the mathematical meaning of optimization.
With optimal Turning point pattern scanner, you can also optimize Elliott Wave Pattern for better profits in scientific way.
Enjoy the pattern and profit for your trading.
Here is the full instruction of X3 pattern framework:
Here is the link to Optimal Turning Point Pattern Scanner.