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Gartley Advanced formation

Gartley Tools:

*Fibonacci retracements (61.8% and 78.6%)

*Fibonacci extension (127.2%)

Gartley Timeframes:

*The Gartley Advanced formation was originally designed as a swing trading strategy. But it also works on lower timeframes.

Gartley Tactics:

*Seek to identify 4 market moves and 3 major Fibonacci zones. The combination of these moves forms the points (X, A, B, C, D) that fulfill the formation.

Rules of engagement: Criteria 1

The Gartley Advanced formation starts with an impulse leg/anchor leg that establishes our X and A points.

Once X and A points have been identified, we then look for our first criteria.

Criteria 1: The market forms the B completion point by fulfilling at least a 61.8% retracement of the XA leg.

Note: AB move remains valid as long as there is at least a 61.8% retracement of XA and that it does not touch the 78.6% retracement of XA. Only candlewick is calculated here. Candle close is not important.

Rules of engagement: Criteria 2

If criteria 1 has been met, then look for criteria 2.

Criteria 2: The market forms the C completion point by fulfilling at least a 61.8% retracement of the AB.

Note: BC move remains valid as long as there is at least a 61.8% retracement of AB and that it does not touch the 88.6% retracement of AB. Only candlewick is calculated here. Candle close is not important.

Rules of engagement: Criteria 3

If criteria 1 and 2 have been met, then look for criteria 3.

Criteria 3: The market forms the D completion (entry point) by fulfilling a 127.2% extension of AB.

Note: D point never extends past X.

Trade management: Entry, stops & targets.

Gartley Entry: Limit order is placed at D completion point.

Gartley Target 1: 38.2% retracement of AD leg. When attained half of the position closes & stop moves to breakeven.

Gartley Target 2: 61.8% retracements of AD leg.

Gartley Stop placement:  Stop always goes past X. Either 113% XA extension, or 1 ATR beyond X, or 1 to 1 measured distance to the first target.

 

Bat Advanced formation

Bat Tools:

*Fibonacci retracements (38.2%, 50%, 61.8% and 88.6%)

Bat Timeframes:

*The Bat Advanced formation was originally designed as a swing trading strategy. But it also works on lower timeframes.

Bat Tactics:

*Seek to identify 4 market moves and 3 major Fibonacci zones. The combination of these moves forms the points (X, A, B, C, D) that fulfill the formation.

Rules of engagement: Criteria 1

The Bat Advanced formation starts with an impulse leg/anchor leg that establishes our X and A points.

Once X and A points have been identified, we then look for our first criteria.

Criteria 1: The market forms the B completion point by fulfilling at least a 50% retracement of the XA leg.

Note: AB move remains valid as long as there is at least a 50% retracement of XA and that it does not touch the 61.8% retracement of XA. Only candlewick is calculated here. Candle close is not important.

Rules of engagement: Criteria 2

If criteria 1 has been met, then look for criteria 2.

Criteria 2: The market forms the C completion point by fulfilling at least a 38.2% retracement of the AB.

Note: BC move remains valid as long as there is at least a 38.2% retracement of AB and that it does not extend past A. Only candlewick is calculated here. Candle close is not important.

Rules of engagement: Criteria 3

If criteria 1 and 2 have been met, then look for criteria 3.

Criteria 3: The market forms the D completion (entry point) by fulfilling a 88.6% XA.

Note: D point never extends past X.

Trade management: Entry, stops & targets.

Bat Entry: Limit order is placed at D completion point.

Bat Target 1: 38.2% retracement of AD leg. When attained half of the position closes & stop moves to breakeven.

Bat Target 2: 61.8% retracements of AD leg.

Bat Stop placement:  Stop always goes past X. Either 113% XA extension or 1 ATR beyond X, or 1 to 1 measured distance to the first target.

 

Butterfly Advanced formation

Butterfly Tools:

*Fibonacci retracements (38.2% and 78.6%)

*Fibonacci extension (127.2%)

Butterfly Timeframes:

*The Butterfly Advanced formation was originally designed as a swing trading strategy. But it also works on lower timeframes.

Butterfly Tactics:

*Seek to identify 4 market moves and 3 major Fibonacci zones. The combination of these moves forms the points (X, A, B, C, D) that fulfill the formation.

Rules of engagement: Criteria 1

The Butterfly Advanced formation starts with an impulse leg/anchor leg that establishes our X and A points.

Once X and A points have been identified, we then look for our first criteria.

Criteria 1: The market forms the B completion point by fulfilling at least a 78.6% retracement of the XA leg.

Note: AB move remains valid as long as there is at least a 78.6% retracement of XA and that it does not extend past X. Only candlewick is calculated here. Candle close is not important.

Rules of engagement: Criteria 2

If criteria 1 has been met, then look for criteria 2.

Criteria 2: The market forms the C completion point by fulfilling at least a 38.2% retracement of the AB.

Note: BC move remains valid as long as there is at least a 38.2% retracement of AB and that it does not extend past A. Only candlewick is calculated here. Candle close is not important.

Rules of engagement: Criteria 3

If criteria 1 and 2 have been met, then look for criteria 3.

Criteria 3: The market forms the D completion (entry point) by fulfilling a 127.2%extension of AB.

Note: D point always extends past X.

Trade management: Entry, stops & targets.

Butterfly Entry: Limit order is placed at D completion point.

Butterfly Target 1: 38.2% retracement of AD leg. When attained half of the position closes & stop moves to breakeven.

Butterfly Target 2: 61.8% retracements of AD leg.

Butterfly Stop placement:  As the entry is beyond X in this pattern then stop is 2*ATR +/- the D or 1 to 1 measured distance to the first target.

 

Cypher Advanced formation

Cypher Tools:

*Fibonacci retracements (38.2% , 61.8% and 78.6%)

*Fibonacci extension (127.2% and 141.4%)

Cypher Timeframes:

*The Cypher Advanced formation was originally designed as a swing trading strategy. But it also works on lower timeframes.

Cypher Tactics:

*Seek to identify 4 market moves and 3 major Fibonacci zones. The combination of these moves forms the points (X, A, B, C, D) that fulfill the formation.

Rules of engagement: Criteria 1

The Cypher Advanced formation starts with an impulse leg/anchor leg that establishes our X and A points.

Once X and A points have been identified, we then look for our first criteria.

Criteria 1: The market forms the B completion point by fulfilling at least a 38.2% retracement of the XA leg.

Note: AB move remains valid as long as there is at least a 38.2% retracement of XA and that it does not have a candle close past 61.8% of XA. A candlewick can go to whatever level here. Only a candle close is important as maximum allowed B.

Rules of engagement: Criteria 2

If criteria 1 has been met, then look for criteria 2.

Criteria 2: The market forms the C completion point by fulfilling at least a 127.2% retracement of the XA.

Note: BC move remains valid as long as there is at least a 127.2% retracement of XA and that it does not have a candle close past 141.4% of the XA. A candlewick can go to whatever level here. Only a candle close is important as maximum allowed C.

Rules of engagement: Criteria 3

If criteria 1 and 2 have been met, then look for criteria 3.

Criteria 3: The market forms the D completion (entry point) by fulfilling a 78.6% retracement of the XC.

Note: D point must go past B. If it doesn’t then the formation is invalidated

Trade management: Entry, stops & targets.

Cypher Entry: Limit order is placed at D completion point.

Cypher Target 1: 38.2% retracement of CD leg. When attained half of the position closes & stop moves to breakeven.

Cypher Target 2: 61.8% retracements of CD leg.

Cypher Stop placement: Stop always goes past X. Either 113% XA extension or 1 ATR beyond X, or 1 to 1 measured distance to the first target.