Gartley Pattern: Ratio Rules and an Incomplete Example

What the Gartley pattern actually is

The Gartley is a chart structure labelled X, A, B, C and D. Each leg is the price move between neighbouring points. A retracement measures how much of an earlier move is reversed. Fibonacci ratios specify the proportions being compared. Modern definitions vary by author; this page uses Scott Carney's convention.

A bullish Gartley is interpreted as a possible upward reversal from D; the bearish version mirrors its legs. The candidate points and ratio convention must be stated before evaluating the outcome. A pattern does not set an executable entry, a guaranteed stop price or a future target.

Fibonacci Ratios and Their Reference Moves

Measure each leg against its stated reference. A visually similar shape can have different ratios. The table identifies the defining relationships used here.

The cited convention places D inside the original XA leg rather than beyond X. A different ratio does not automatically identify a Bat or Butterfly; each has additional conditions.

The Full Rule Set as Published Sources State It

The table above covers B and D. Published guides add a range for C and a few conventions for stops and exits. We read two sources on 28 Oct 2026: an Indian broker's educational article (Tradejini, The Blueprint to Trading Gartleys) and a search summary of Scott Carney's standard. They agree on the core ratios, but they are conventions from chart-reading books and blogs, not laws, and neither presents tested results.

The Tradejini article claims a risk-reward of 1:2 to 1:3 for the pattern. It gives no data to back that figure, and our example below shows why it should be calculated rather than assumed. The same article notes that past performance is not indicative of future results.

Strict Versus Loose Matching

Search summaries note that chart tools usually allow a tolerance of a few percent on each ratio, and strict versions fix B at exactly 0.618. This matters because the chance of a match rises as the tolerance widens. A wide tolerance finds more patterns, and more of them will be accidents. Choose your tolerance before you scan, write it in the journal and do not change it after seeing a result.

The Tradejini article itself describes a bullish example whose B sits at about 0.60 of XA, which would fail a strict reading of its own rule. If a published example does not meet the stated ratios, a live chart is even less likely to.

Illustrative Retracement Checks on Assumed Reliance Prices

The made-up Reliance prices below demonstrate the B and D retracements and equal AB and CD lengths. They are not a verified complete Gartley under the cited convention: the BC projection check also matters.

• Illustrative X = Rs 1,200 and A = Rs 1,400, so XA = 200.
• B = 1,400 minus (0.618 x 200) = Rs 1,276.4.
• Choose illustrative C = Rs 1,366.4. Then BC = 90, and AB = 123.6.
• D = 1,400 minus (0.786 x 200) = Rs 1,242.8. CD = 123.6, matching AB.
• BC retraces about 72.82% of AB, and CD extends about 137.33% of BC. That CD/BC ratio is about 1.3733, rather than either cited BC projection. Matching B, D and AB=CD alone does not establish a complete pattern.

Checking the Reliance Example Against the C Range

The earlier made-up example has AB = 123.6 and BC = 90, so BC retraces 90 / 123.6 = about 72.82% of AB. That falls inside the 0.382 to 0.886 range quoted for C, so it passes the C test. B passes at 61.8% of XA, D passes at 78.6% of XA, and AB equals CD. What it misses is the BC projection check, because CD / BC is about 1.3733, which is not 1.27 or 1.618. Most checks pass and one does not, which is the typical situation on real charts. Decide in advance whether a near-match counts.

A Gartley Converted to a Nifty Futures Rupee Result

Here is how to turn chart distances into rupees. All prices are invented and the example is not a forecast. Assume a bullish pattern on Nifty with X at 24,000 and A at 25,000, so XA is 1,000 points. The Nifty lot size in this site's NSE-sourced file is 65.

Two points follow. First, the stop distance is set by where X sits, not by what you can afford. If ₹14,560 is more than you accept losing, the setup does not fit your risk and the answer is to skip it, not to move the stop closer. Second, a confirmation candle or a later fill changes the entry and so changes every number in the table. Costs also reduce the reward and raise the loss. Use the F&O trading cost calculator and the Nifty position size calculator.

From Chart Distances to Rupee Results

To convert a proposed price change to rupees, multiply by the actual traded quantity and account for costs. A chart projection alone does not supply an execution price.

Trading the Gartley on Nifty and Bank Nifty F&O

As checked in October 2026, NSE permitted lots are Nifty 65, Bank Nifty 30 and FinNifty 60. These quantities convert futures-price distances to rupees; option losses instead depend on option-premium changes. A sold put spread is not limited to the premium paid, because it is a credit position with a different payoff.

Bank Nifty has monthly and quarterly options with no weekly series. Nifty retains weekly options on NSE. The actual expiry and remaining premium matter; selecting a longer expiry or another instrument does not guarantee the proposed reversal will cover its costs.

Bullish versus bearish Gartley side by side

The bearish version reverses the directions of the bullish legs. Both interpretations still require the stated ratios and can fail to produce a later reversal.

What an Added Confirmation Rule Changes

Any added candle, volume or momentum filter changes the rule being evaluated. It needs its own evidence. Agreement at D does not convert the pattern into a high-probability trade.

Common mistakes that turn a Gartley into a loss

A key error is selecting pivots only after seeing a reversal. Record candidate points and the tolerances used before the outcome; a line that fits later prices can give a misleading impression of predictability.

• State each ratio denominator.
• Keep unrounded prices until calculations are complete.
• Separate a completed pattern from an executable entry.
• Record failed candidates and stop execution differences.
• Include contract quantity, fees and expiry in any trading evaluation.

A Pre-Trade Checklist for a Proposed Gartley

1. Write the X, A, B, C and D prices and dates before the outcome is known.
2. State the convention you use, such as Carney's, and your ratio tolerance.
3. Calculate each ratio from unrounded prices.
4. Mark the potential reversal zone as a range, not a line.
5. Decide whether you need a confirmation signal and define it in words.
6. Set the stop from the chart structure, then work out the rupee loss for your actual quantity.
7. Check that the loss fits your own limit, or skip the trade.
8. Note any known events and the contract's expiry.

A checklist does not make the pattern work. It makes your records honest, which is the only way to find out whether the pattern works for you.

How to Log Gartley Trades and Failed Candidates

The biggest trap with harmonic patterns is remembering only the ones that worked. To avoid it, log every candidate you looked at, including those you skipped and those that failed. Count them at the end of the month.

In OneTradeJournal you log trades by hand and can add a strategy name, stop, target, emotions, mistakes and plan deviation, with the pattern points in the notes. It estimates charges per trade, and reports show strategy analysis and a P&L calendar. It has no market data and will not find patterns for you. The AI can be wrong, so check any suggestion against your log. A small number of results, good or bad, says little. For related pages, see the Fibonacci retracement guide, Fibonacci extension, Bat pattern, Crab pattern and ABCD pattern.

Records for Indian Tax Reporting

Keep trade and expense records for the instrument actually traded. Ask a qualified chartered accountant to confirm income classification and filing obligations.

Related reading: position sizing, failed moves, costs.

Sources

• Gartley definition and ratio conventions (checked October 2026)
• Current permitted market lots (checked October 2026)
• Discontinuation of selected weekly index options (checked October 2026)
• Bank Nifty contract specifications (checked October 2026)