Trade Setup
Once the X and A points have been identified the B point is formed by inputting a precise 61.8% retracement of the XA leg. Therefore it must be 1 pip more than 55.9% (halfway between 50% and 61.8%) and 1 pip less than 70.2% (halfway between 61.8% and 78.6 %).
The C point is valid if it touches at least a 38.2% retracement of the AB and it does not exceed the A point (100% AB).
The Potential Reversal Zone (PRZ) is calculated as a combination of the 78.6% extension of the XA leg, AB=CD movement level (so the same distance from C-D as A-B leg) and finally, the corresponding BC extensions:
161.8% of the BC if the C-point is precise 38.2% of the AB,
161.8% of the BC if the C-point is precise 50%% of the AB,
161.8% of the BC if the C-point is precise 61.8% of the AB,
141.4% of the BC if the C-point is precise 70.7% of the AB,
127.2% of the BC if the C-point is precise 78.6% of the AB,
113.0% of the BC if the C-point is precise 88.6% of the AB.
None of the levels should extend past X-point.
Harmonic Gartley Target 1: 38.2% retracement of the AD leg.
Harmonic Gartley Target 2: 61.8% retracement of the AD leg.
Harmonic Gartley Stops: 113% XA.
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