Good Gartley example - post mortem observation
See how volume was drying down and was not validating the rising price.
Then we had this red Outside bar on raising volume that occurred at the exact 1 to 1 point.
Also, it occurred above a previous high so we might imagine that stops were taken.
This was also the 61% retracement.
Another confluence point is a Divergence from both the 8 and 14 period Stochastics which adds up to have an explosive move.
You don't need two, one is just fine.
it's for sure an after-the-fact observation, but these Gartleys or Spring take some time to set up, and then when they go they go. With the good ones you rarely have a chance to enter back into the trade. Just observing - one of the targets I use is the 161% extensions of the recent pullback so let's see if the price will go there.
Then we had this red Outside bar on raising volume that occurred at the exact 1 to 1 point.
Also, it occurred above a previous high so we might imagine that stops were taken.
This was also the 61% retracement.
Another confluence point is a Divergence from both the 8 and 14 period Stochastics which adds up to have an explosive move.
You don't need two, one is just fine.
it's for sure an after-the-fact observation, but these Gartleys or Spring take some time to set up, and then when they go they go. With the good ones you rarely have a chance to enter back into the trade. Just observing - one of the targets I use is the 161% extensions of the recent pullback so let's see if the price will go there.