2 Gartley's on a Mar YM 3 Minute

Check out these 2 back to back Gartley Patterns on a 3 minute March YM futures chart. Both were successful scalps using a 61.8% retracement of the AD range as the target.

Larry Pesavento's book "Trade What You See" says the Gartley Pattern is successful 70% of the time.

Note these are not rigorous Gartley's as far as Fibonacci levels. It may be better to call them XABCD patterns.

YM Dec Dow Jones Futures Near Term Target - Exit

3 minute

Daily

First target (26500) was hit 8:37am ET. Then I zoomed into the 3 minute chart to micro-manage since its quite possible we don't go any lower for days. I trailed a stop behind the top of the second candle behind the current candle. The stop was hit at 8:46am ET on the other 2 positions at 26516.

Since this was a trade on the Daily and covering a wide price range on a volatile chart, we used the MYM mini contract ($0.50/point) instead of the full YM ($5/point) contract.

So, the happy summary is:

27001 Entry - 26500 Exit = 501 x $0.50/point = $250.50

27250 Entry - 26516 Exit = 734 x $0.50/point = $367.00

27364 Entry - 26516 Exit = 848 x $0.50/point = $424.00

Total win $1,041.50

YM Dec Dow Jones Futures Near Term Target - Update 1

How beautiful is that?! Price action went in our favor big time. But wait it gets better.

You can't see it on the chart because I don't include after-market data on the YM Daily chart so I can see the overnight gaps, but last night I added a Sell-Stop at 27250 and 27364. 27250 corresponds to the H&S Neckline, which might get hit on the way to the 8ema. 27364 corresponds to the top of the gap, made by the low of 3 trading days ago. 27250 was hit at 20:01 ET last night and 27364 was hit 04:39 ET. The original 27001 entry was yesterday 06:13am ET. 

Then, after the 2 additional scale-in orders were hit, look out below. We closed today at 26685. How beautiful is that?!

On the way down we have 3 scale-out orders to cover at 

26500 - Bottom of AB=CD projection.

26386 - Half the H&S projection.

26250 - The 61.8% Fib Ext.

If we get another candle tomorrow like we had today, which would be asking a lot, we're likely to hit all 3 targets and be out before the weekend. But we'll probably get a partial retracement or a Doji candle tomorrow. 

YM Dec Dow Jones Futures Near Term Target

YM Dec Dow Jones Futures daily chart above shows a Head & Shoulders pattern (yellow). We broke and closed under the neckline. I have found price often goes to 50% of the Head & Shoulders projection. In this case that is about 26386.

The angled white line segments show an AB=CD price projection, which is about 26500.

There's a gap from 26326 - 26233. So the gap fill would go down to about 26233.

A 61.8% Fibonacci extension of the Head - Neckline range (green) is 26247.

On the scope of this chart, these 4 levels are relatively close to each other, so a price target in the range of 26500 - 26233 is indicated. I think the best target is the 26247 61.8% Fibonacci extension. But what I'd like to do is scale out a quarter position at each level. 

We could leave a small position on as a runner for a bigger move, but I expect the 4 possible support levels mentioned above, plus a previous consolidation area in this same range around July 15th - August 4th, will cause price action to reverse, at least temporarily. Then when that reversal tops, we can re-short. If we do get a reversal then a runner will just give us a loss, so I'd rather not put it on.