Found a beautiful Gartley Pattern (aka XABCD) on January Soybean Oil. These patterns are supposed to work about 70-80% of the time. I found other bullish indications as well. Here they are:
- Bullish Gartley
- Morning Star
- Close above 8ema and all MA's
- Bounce off 38.2% Fib on the green range
- Bounce off previous Resistance 12/29/2020 at 36.28
Target: There are 3 likely sources of resistance that all converge very near each other at 40.50:
- 27.2% Fib extension on the green range
- 161.8% Fib extension on the yellow range
- 161.8% Fib extension on the Gartley AD leg
Stop:Just under the D point of the Gartley at 36.50 .
I entered this yesterday but had no time to blog about it. Today was a beautiful follow through. See the chart at the top. Here's the summary:
Entry: 37.70
Target: 40.50
Stop: 36.50
Risk: 37.70-36.50=1.2*$600/point=$720
Reward: 40.50-37.70=2.8*$600/pt=$1680
R:R 1680/720=1:2.3 which is good
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