The Gartley Pattern is a very complex trading pattern based on Fibonacci numbers.
It’s called a Harmonic chart pattern.
In forex, the pattern is used to identify major turning points in the trend.
When a Gartley pattern pops up in an uptrending market, traders will be looking for short trade opportunities.
Conversely, when a Gartley pattern pops up in a downtrending market, traders will be looking for long trade opportunities.
Now, to identify this Harmonic chart pattern, you need to be an expert because of its complexity but the good news is…
The Gartley Pattern MT4 indicator does all the hard work and identifies Gartley patterns for you on autopilot.
It works on any currency pair and for every timeframe without exception.
Free Download
Download the “gartley-patterns.ex4” MT4 indicator
Indicator Chart (EUR/USD H4)
The EUR/USD 4-hour chart below displays the Gartley Pattern Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Gartley Pattern MT4 indicator are easy to interpret and go as follows:
Buy Signal: Open a buy order when the Gartley Pattern MT4 indicator displays a blue arrow on the chart. Place a protective stop-loss 3 pips below the low of the Gartley trading pattern.
Sell Signal: Open a sell order when the Gartley Pattern MT4 indicator displays a red arrow on the chart. Place a protective stop-loss 3 pips above the high of the Gartley trading pattern.
Trade Exit: Use your own method of trade exit.
Gartley Pattern + Forex Trend Filter AO MT4 Strategy
This MT4 strategy combines the precise harmonic pattern detection of the Gartley Pattern Indicator with the momentum confirmation of the Forex Trend Filter AO Indicator.
The Gartley indicator identifies high-probability turning points by plotting blue arrows for buy opportunities and red arrows for sell opportunities.
The Forex Trend Filter AO helps confirm the trend by using a histogram: bars above 0 signal bullish momentum and bars below 0 signal bearish momentum.
Combining these indicators allows traders to take trades aligned with both harmonic patterns and market momentum.
This strategy works best on M15, M30, and H1 charts, and is suitable for intraday and swing traders looking for high-probability setups.
Buy Entry Rules
- The Gartley Pattern displays a blue arrow, signaling a buy opportunity.
- Forex Trend Filter AO histogram is above 0, confirming bullish momentum.
- Enter long at the open of the candle following the blue Gartley arrow.
- Place a stop loss below the nearest swing low or the Gartley pattern low.
- Take profit at the nearest resistance level or use a 1.5 to 1 reward-to-risk ratio.
Sell Entry Rules
- The Gartley Pattern displays a red arrow, signaling a sell opportunity.
- Forex Trend Filter AO histogram is below 0, confirming bearish momentum.
- Enter short at the open of the candle following the red Gartley arrow.
- Place stop loss above the nearest swing high or the Gartley pattern high.
- Take profit at the nearest support level or use a 1.5 to 1 reward-to-risk ratio.
Advantages
- Combines harmonic pattern precision with momentum confirmation for higher probability trades.
- Clear entry signals from Gartley arrows reduce decision-making stress.
- Works on multiple timeframes for flexibility between intraday and swing trading.
- Helps traders avoid counter-trend trades and false breakouts.
Drawbacks
- Patterns do not appear frequently, so trading opportunities may be limited.
- Sideways or choppy markets can produce false histogram confirmations.
- Requires patience to wait for both Gartley and AO alignment.
- Stop loss must be carefully managed as harmonic patterns can sometimes extend.
Case Study 1: AUDUSD M30
During the London session, AUDUSD formed a bullish Gartley pattern, and a blue arrow appeared at 0.6702.
The Forex Trend Filter AO histogram was above 0, confirming bullish momentum.
A long position was opened at 0.6705 with a stop loss at 0.6688, risking 17 pips.
Price moved steadily to 0.6728, reaching a 23 pip profit and validating the alignment of pattern and momentum.
Case Study 2: USDCHF H1
USDCHF developed a bearish Gartley pattern during the European session, and a red arrow appeared at 0.8950.
The AO histogram was below 0, confirming downward momentum.
A short trade was taken at 0.8947 with a stop at 0.8963, risking 16 pips.
Price dropped to 0.8925, producing a 22 pip gain.
The combined indicators helped identify a high-probability trade with minimal drawdown.
Strategy Tips
- Only take trades when both the Gartley arrow and AO histogram confirm the direction.
- Use higher timeframes, such as H1, for more reliable patterns and smoother momentum.
- Use proper risk management and set stop losses according to recent swing points.
- Consider exiting partial positions near key support or resistance levels to lock in profits.
- Monitor the AO histogram for weakening momentum to decide if early exits are necessary.
- Be patient and wait for clear pattern formation rather than forcing trades in uncertain markets.
Download Now
Download the “gartley-patterns.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Harmonic pattern
