13 Oct 10 - Bearish Gartley Pattern on NZD/JPY - H1 Chart

A completion of a bearish Gartley Pattern was seen on the NZD/JPY on the H1 chart where the D point exceeded the 0.786 XA retracement level by approximately 20 pips and reversed. The reversal was validated by a bearish engulfing pattern following a shooting star formation which confirmed the top.


A trade was executed when price action failed to hold above the PRZ.


Signals to go short were based on the following:

1. A confluence of 3 harmonic ratios were seen - 0.786 XA @ 62.282, 1.27 BC @ 62.260 and AB=CD @ 62.280.
2. Candlestick formation as mentioned earlier.
3. Fibonacci Time Projection at 1.41 which the price made a reversal.
4. Price was reversing at the upper band of a descending channel which serves as a added confidence (Refer attached H4 Chart).

Once the price close below the PRZ, a short was trigger on the open of the next candle.


Trade Details

• Date: 13 Oct 10
• Time: GT 19:22
• Entry Price: 62.239
• S/L: 62.540 (30.1 pips)
• T/P: 61.550 (68.9 pips - 0.618 AD Swing)
• Risk/Reward Ratio: 1:2.289