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Chapter 6. The Gartley Pattern > Standard and Poor’s 500 Tracking Stock (SPY): ...

Standard and Poor’s 500 Tracking Stock (SPY): 5-Minute

The following chart of the perfect Bullish Gartley in the SPY exemplifies the required structure and alignment of Fibonacci ratios to validate the pattern (see Figure 6.18). Starting with an almost exact 61.8% B point retracement, the price action formed a perfect AB=CD pattern that reversed exactly at the pattern’s completion point.

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Figure 6.18.

The 0.786 XA retracement and the 1.618 BC projection complemented the perfect Bullish AB=CD pattern to define a tight Potential Reversal Zone (PRZ). These numbers clearly pinpointed the trade opportunity to buy the intra-day support in a close 15-cent range just under 87.50 level. Figure 6.19 of the price action in the PRZ shows an ideal reversal after all of the harmonic numbers were tested.


  

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