The Gartley Pattern, also known as the 222 pattern is a harmonic pattern usually preceded by a significant low or high. This is a simple harmonic pattern that was developed by Harold McKinley Gartley. There are many types of harmonic patterns that include Gartley Pattern This can give you a major advantage because these patterns can give you very accurate entry, stop loss and target levels. Harmonic patterns can indicator potential price movements and key reversal or turning points. The projection and retracement levels that are derived using the high and low swing points will give you key price levels that you can place both your stops and targets. These can also help you identify the swing high and swing low points. The main idea of Fibonacci is using the key ratios (0.618 or 1.618) to identify the main turning points, retracements, and extensions on a chart. The Fibonacci ratio analysis works exceptionally well in the forex market and you can use it on any timeframe chart. The primary theory behind harmonic patterns is centered on price/time movements, which complies with the Fibonacci ratio relationships. This trading method is precise and based on the assumption that patterns repeat themselves. Harmonic patterns work by combining patterns and mathematics. When you have correctly identified a high probability harmonic pattern you will be able to enter your trade in a highly profitable reversal zone with little risk. They also provide you with levels that may act as new potential reversal zones, allowing you to enter reversal trades. These patterns offer a way for you to establish where the key market turning points will occur. Harmonic patterns can be defined as trend reversal patterns based on retracement levels, geometric structures and Fibonacci extensions. These patterns follow geometric price action and Fibonacci levels. Harmonic patterns are a type of advanced trading pattern that take place naturally in financial charts. Harmonic patterns were first introduced into the trading scene in 1932 by Harold McKinley Gartley.
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