FIBONACCI RETRACEMENT - THE GARTLEY METHOD (B

Fig 1

0.618/0.786

C
0.618

B
1.27/1.618

0.618

D
0.786

FIBONACCI LEVELS
TARGETS
B
C
D
T

0.382

0.5

0.618

0.786

1.27

1.618

1417
1419
1423
1394

1403
1428
1417
1404

1388
1436
1411
1413

1368
1448
1403
1426

1309
1482
1379
1463

1267
1507
1361
1490

FIBONACCI RETRACEMENT - THE GARTLEY METHOD (B

X

0.786
B

0.618

D
1.27/1.618

T
0.618
C
A

Fig 2

FIBONACCI LEVELS

0.618/0.786

0.382

0.5

0.618

0.786

1.27

1.618

TARGETS
B
C
D
T

0.382

0.5

0.618

0.786

1.27

1.618

8252
8234
8231
8332

8324
8193
8257
8297

8396
8152
8282
8261

8497
8095
8319
8212

8791
7928
8424
8068

9002
7808
8499
7964

LEY METHOD (BULLISH ASCENT)

INSERT VALUES IN THE LIGHT COLOURED BOXES

INSERT FIGURES FOR X AND A

1342
A
1463
A-X

INSERT ACTUAL FIGURE FOR B

1463
B
1392
A-B

71

INSERT ACTUAL FIGURE FOR C

1392
C
1442
B-C

50

INSERT ACTUAL FIGURE FOR D

1442
D
1365
C-D

77

121

1.INSERT VALUES FOR X AND A TO GET TARGET FOR B.

2.INSERT ACTUAL VALUE FOR B TO GET TARGET FOR C.
3.INSERT ACTUAL VALUE FOR C TO GET TARGET FOR D.
4.INSERT ACTUAL VALUE FOR D TO GET TARGET FOR T.
IDEAL LEVELS DEPICTED IN BOLD IN THE TABLE
B4 IS ALSO THE 0.786AX TARGET FOR D

LEY METHOD (BEARISH DESCENT)

INSERT VALUES IN THE LIGHT COLOURED BOXES

INSERT FIGURES FOR X AND A

8627
A
8021
A-X

606

INSERT ACTUAL FIGURE FOR B

8021
B
8365
A-B

344

INSERT ACTUAL FIGURE FOR C

8365
C
8148
B-C

217

INSERT ACTUAL FIGURE FOR D

8148
D
8445
C-D

297

CLASSIC TECHNIQUES

--------------------------------------------------------------------------

Price patterns by themselves (without movi

what's happening. We might say that patter
indicators the backbone of 99% of our syst
handles, and ascending triangles? Here's a
of 70% wins.

FIGURE 1: BULLISH BARTLEY MODEL. Gar

trading in a predictable pattern. The diagram
table.

You use Fibonacci ratios to measure the re

geometric pattern that, when completed, gi
8, 13, 21, 34, 55, 89, 144, 233, 377 ... to infini
the two numbers and adds it to the followin
former by the latter, you find the ratio settle
number. If we reverse the procedure and di
numbers plus their square roots, which are
CHART PATTERNS

The Gartley model was first identified and n

price reversals and the retracement percen
Figure 1 shows an uptrend XA with a price
range A minus X, as shown along line XB.

At B, the price reverses again. Ideally, the r

length of the lines, and is shown along the
Fibonacci ratios, the retracement CD shoul
D is the trigger to buy. The target retraceme

The overall retracement XD is a critical part

ideally be 78.6% of the range XA. One furth

1.INSERT VALUES FOR X AND A TO GET TARGET FOR B.

2.INSERT ACTUAL VALUE FOR B TO GET TARGET FOR C.
3.INSERT ACTUAL VALUE FOR C TO GET TARGET FOR D.
4.INSERT ACTUAL VALUE FOR D TO GET TARGET FOR T.
IDEAL LEVELS DEPICTED IN BOLD IN THE TABLE
B4 IS ALSO THE 0.786AX TARGET FOR D

CHNIQUES

------------------------------------------------------

by themselves (without moving averages and indicators) are all that is necessary to chart a stock and unders
ng. We might say that pattern recognition is the heart of technical analysis. If that's true, why are technical
ackbone of 99% of our systems? Is it because we have trouble identifying those head and shoulders, cups w
scending triangles? Here's a technique that uses price charts only, is fairly easy to master, and has a track re

LISH BARTLEY MODEL. Gartley's model from his 1935 book uses a series of Fibonacci ratios to establish a s
dictable pattern. The diagram depicts IDEAL retracement levels and when calculated are shown in BOLD in t

cci ratios to measure the retracements of a stock's up and down movement, with the objective of developing
rn that, when completed, gives a buy or a sell signal. The sequence of the Fibonacci numbers is zero, 1, 1, 2
, 89, 144, 233, 377 ... to infinity. Starting with zero and adding 1 begins the series. The calculation takes the su
s and adds it to the following number. If you take the ratio of two successive numbers in the series by dividi
atter, you find the ratio settles down to a constant value, which is 0.61804. This is called the golden ratio or go
everse the procedure and divide the latter by the former, we get 1.61804. These numbers are reciprocals. The
heir square roots, which are 0.786 and 1.27, respectively, are the only Fibonacci ratios I use.

RNS

del was first identified and named by H.M. Gartley in his 1935 work Profits In The Stock Market. It shows a se
and the retracement percentages that establish an ideal pattern.

an uptrend XA with a price reversal at A. Using Fibonacci ratios, the retracement AB should be 61.8% of the
X, as shown along line XB.

everses again. Ideally, the retracement BC should be between 61.8% and 78.6% of the AB price range, not th
es, and is shown along the line AC. At C, the price again reverses (harmonics at work!). In this pattern, again
s, the retracement CD should be between 127% and 161.8% of the range BC and is shown along the line BD.
to buy. The target retracement DT is initially 61.8% of the range CD; however, the price could go through the

acement XD is a critical part of forecasting, and is the retracement of the range AD with respect to XA. XD sh
% of the range XA. One further ideal is for CD to equal AB.

hart a stock and understand

ue, why are technical
d and shoulders, cups with
aster, and has a track record

cci ratios to establish a stock

are shown in BOLD in the

objective of developing a
numbers is zero, 1, 1, 2, 3, 5,
calculation takes the sum of
s in the series by dividing the
ed the golden ratio or golden
ers are reciprocals. These two
s I use.

ck Market. It shows a series of

should be 61.8% of the price

e AB price range, not the

k!). In this pattern, again using
own along the line BD. Price
e could go through the roof.

th respect to XA. XD should

Price Up
8130
8131
8129
8056
8128
8055
8127
8054
8126
8053
8125
8052
8124
8051
8123
8050
8122
8049
8121
8048
8120
8047
8119
8046
8118
8045
8117
8044
8116
8043
8115
8042
8114
8041
8113
8040
8112
8039
8111
8110
8190
8189
ORDINAL CROSS
Time
12/27/2002 12/28/2002
12/26/2002 10/14/2002
12/25/2002 10/13/2002
12/24/2002 10/12/2002
12/23/2002 10/11/2002
12/22/2002 10/10/2002
12/21/2002 10/9/2002
12/20/2002 10/8/2002
12/19/2002 10/7/2002
12/18/2002 10/6/2002
12/17/2002 10/5/2002
12/16/2002 10/4/2002
12/15/2002 10/3/2002
12/14/2002 10/2/2002
12/13/2002 10/1/2002
12/12/2002 9/30/2002
12/11/2002 9/29/2002
12/10/2002 9/28/2002
12/9/2002 9/27/2002
12/8/2002 12/7/2002
2/25/2003 2/24/2003
ORDINAL CROSS
Price Down
4120
4119
4121
4194
4122
4195
4123
4196

8132
8057
7990
7989
7988
7987
7986
7985
7984
7983
7982
7981
7980
7979
7978
7977
7976
7975
8038
8109
8188

12/29/2002
10/15/2002
8/9/2002
8/8/2002
8/7/2002
8/6/2002
8/5/2002
8/4/2002
8/3/2002
8/2/2002
8/1/2002
7/31/2002
7/30/2002
7/29/2002
7/28/2002
7/27/2002
7/26/2002
7/25/2002
9/26/2002
12/6/2002
2/23/2003

4118
4193
4260
4261

8133
8058
7991
7932
7931
7930
7929
7928
7927
7926
7925
7924
7923
7922
7921
7920
7919
7974
8037
8108
8187

8134
8059
7992
7933
7882
7881
7880
7879
7878
7877
7876
7875
7874
7873
7872
7871
7918
7973
8036
8107
8186

8135
8060
7993
7934
7883
7840
7839
7838
7837
7836
7835
7834
7833
7832
7831
7870
7917
7972
8035
8106
8185

8136
8061
7994
7935
7884
7841
7806
7805
7804
7803
7802
7801
7800
7799
7830
7869
7916
7971
8034
8105
8184

8137
8062
7995
7936
7885
7842
7807
7780
7779
7778
7777
7776
7775
7798
7829
7868
7915
7970
8033
8104
8183

12/30/2002 12/31/2002 1/1/2003

1/2/2003
1/3/2003
10/16/2002 10/17/2002 10/18/2002 10/19/2002 10/20/2002
8/10/2002 8/11/2002 8/12/2002 8/13/2002 8/14/2002
6/12/2002 6/13/2002 6/14/2002 6/15/2002 6/16/2002
6/11/2002 4/23/2002 4/24/2002 4/25/2002 4/26/2002
6/10/2002 4/22/2002 3/12/2002 3/13/2002 3/14/2002
6/9/2002
4/21/2002 3/11/2002
2/6/2002
2/7/2002
6/8/2002
4/20/2002 3/10/2002
2/5/2002 1/11/2002
6/7/2002
4/19/2002
3/9/2002
2/4/2002 1/10/2002
6/6/2002
4/18/2002
3/8/2002
2/3/2002
1/9/2002
6/5/2002
4/17/2002
3/7/2002
2/2/2002
1/8/2002
6/4/2002
4/16/2002
3/6/2002
2/1/2002
1/7/2002
6/3/2002
4/15/2002
3/5/2002
1/31/2002 1/6/2002
6/2/2002
4/14/2002
3/4/2002
1/30/2002 1/29/2002
6/1/2002
4/13/2002
3/3/2002
3/2/2002
3/1/2002
5/31/2002 4/12/2002 4/11/2002 4/10/2002 4/9/2002
5/30/2002 5/29/2002 5/28/2002 5/27/2002 5/26/2002
7/24/2002 7/23/2002 7/22/2002 7/21/2002 7/20/2002
9/25/2002 9/24/2002 9/23/2002 9/22/2002 9/21/2002
12/5/2002 12/4/2002 12/3/2002 12/2/2002 12/1/2002
2/22/2003 2/21/2003 2/20/2003 2/19/2003 2/18/2003

4117
4192
4259
4318

4116
4191
4258
4317

4115
4190
4257
4316

4114
4189
4256
4315

4113
4188
4255
4314

4124
4197
4125
4198
4126
4199
4127
4200
4128
4201
4129
4202
4130
4203
4131
4204
4132
4205
4133
4206
4134
4207
4135
4208
4136
4209
4137
4210
4138
4211
4139
4140
4060
4061
ORDINAL CROSS

4262
4263
4264
4265
4266
4267
4268
4269
4270
4271
4272
4273
4274
4275
4212
4141
4062

4319
4320
4321
4322
4323
4324
4325
4326
4327
4328
4329
4330
4331
4276
4213
4142
4063

4368
4369
4370
4371
4372
4373
4374
4375
4376
4377
4378
4379
4332
4277
4214
4143
4064

4367
4410
4411
4412
4413
4414
4415
4416
4417
4418
4419
4380
4333
4278
4215
4144
4065

4366
4409
4444
4445
4446
4447
4448
4449
4450
4451
4420
4381
4334
4279
4216
4145
4066

4365
4408
4443
4470
4471
4472
4473
4474
4475
4452
4421
4382
4335
4280
4217
4146
4067

8138
8063
7996
7937
7886
7843
7808
7781
7762
7761
7760
7759
7774
7797
7828
7867
7914
7969
8032
8103
8182

1/4/2003
10/21/2002
8/15/2002
6/17/2002
4/27/2002
3/15/2002
2/8/2002
1/12/2002
12/24/2001
12/23/2001
12/22/2001
12/21/2001
1/5/2002
1/28/2002
2/28/2002
4/8/2002
5/25/2002
7/19/2002
9/20/2002
11/30/2002
2/17/2003

4112
4187
4254
4313

8139
8064
7997
7938
7887
7844
7809
7782
7763
7752
7751
7758
7773
7796
7827
7866
7913
7968
8031
8102
8181

CARDINAL CROSS
8140
8141
8065
8066
7998
7999
7939
7940
7888
7889
7845
7846
7810
7811
7783
7784
7764
7765
7753
7754
7750
7755
7757
7756
7772
7771
7795
7794
7826
7825
7865
7864
7912
7911
7967
7966
8030
8029
8101
8100
8180
8179
CARDINAL CROSS

1/5/2003
1/6/2003
1/7/2003
10/22/2002 10/23/2002 10/24/2002
8/16/2002 8/17/2002 8/18/2002
6/18/2002 6/19/2002 6/20/2002
4/28/2002 4/29/2002 4/30/2002
3/16/2002 3/17/2002 3/18/2002
2/9/2002
2/10/2002 2/11/2002
1/13/2002 1/14/2002 1/15/2002
12/25/2001 12/26/2001 12/27/2001
12/14/2001 12/15/2001 12/16/2001
12/13/2001 12/12/2001 12/17/2001
12/20/2001 12/19/2001 12/18/2001
1/4/2002
1/3/2002
1/2/2002
1/27/2002 1/26/2002 1/25/2002
2/27/2002 2/26/2002 2/25/2002
4/7/2002
4/6/2002
4/5/2002
5/24/2002 5/23/2002 5/22/2002
7/18/2002 7/17/2002 7/16/2002
9/19/2002 9/18/2002 9/17/2002
11/29/2002 11/28/2002 11/27/2002
2/16/2003 2/15/2003 2/14/2003
CARDINAL CROSS
4111
4186
4253
4312

4110
4185
4252
4311

4109
4184
4251
4310

8142
8067
8000
7941
7890
7847
7812
7785
7766
7767
7768
7769
7770
7793
7824
7863
7910
7965
8028
8099
8178

8143
8068
8001
7942
7891
7848
7813
7786
7787
7788
7789
7790
7791
7792
7823
7862
7909
7964
8027
8098
8177

8144
8069
8002
7943
7892
7849
7814
7815
7816
7817
7818
7819
7820
7821
7822
7861
7908
7963
8026
8097
8176

8145
8070
8003
7944
7893
7850
7851
7852
7853
7854
7855
7856
7857
7858
7859
7860
7907
7962
8025
8096
8175

1/8/2003
10/25/2002
8/19/2002
6/21/2002
5/1/2002
3/19/2002
2/12/2002
1/16/2002
12/28/2001
12/29/2001
12/30/2001
12/31/2001
1/1/2002
1/24/2002
2/24/2002
4/4/2002
5/21/2002
7/15/2002
9/16/2002
11/26/2002
2/13/2003

1/9/2003
10/26/2002
8/20/2002
6/22/2002
5/2/2002
3/20/2002
2/13/2002
1/17/2002
1/18/2002
1/19/2002
1/20/2002
1/21/2002
1/22/2002
1/23/2002
2/23/2002
4/3/2002
5/20/2002
7/14/2002
9/15/2002
11/25/2002
2/12/2003

1/10/2003
10/27/2002
8/21/2002
6/23/2002
5/3/2002
3/21/2002
2/14/2002
2/15/2002
2/16/2002
2/17/2002
2/18/2002
2/19/2002
2/20/2002
2/21/2002
2/22/2002
4/2/2002
5/19/2002
7/13/2002
9/14/2002
11/24/2002
2/11/2003

1/11/2003
10/28/2002
8/22/2002
6/24/2002
5/4/2002
3/22/2002
3/23/2002
3/24/2002
3/25/2002
3/26/2002
3/27/2002
3/28/2002
3/29/2002
3/30/2002
3/31/2002
4/1/2002
5/18/2002
7/12/2002
9/13/2002
11/23/2002
2/10/2003

4108
4183
4250
4309

4107
4182
4249
4308

4106
4181
4248
4307

4105
4180
4247
4306

4364
4407
4442
4469
4488
4489
4490
4491
4476
4453
4422
4383
4336
4281
4218
4147
4068

4363
4406
4441
4468
4487
4498
4499
4492
4477
4454
4423
4384
4337
4282
4219
4148
4069

4362
4361
4405
4404
4440
4439
4467
4466
4486
4485
4497
4496
4500
4495
4493
4494
4478
4479
4455
4456
4424
4425
4385
4386
4338
4339
4283
4284
4220
4221
4149
4150
4070
4071
CARDINAL CROSS

4360
4403
4438
4465
4484
4483
4482
4481
4480
4457
4426
4387
4340
4285
4222
4151
4072

4359
4402
4437
4464
4463
4462
4461
4460
4459
4458
4427
4388
4341
4286
4223
4152
4073

4358
4401
4436
4435
4434
4433
4432
4431
4430
4429
4428
4389
4342
4287
4224
4153
4074

4357
4400
4399
4398
4397
4396
4395
4394
4393
4392
4391
4390
4343
4288
4225
4154
4075

8146
8071
8004
7945
7894
7895
7896
7897
7898
7899
7900
7901
7902
7903
7904
7905
7906
7961
8024
8095
8174

8147
8072
8005
7946
7947
7948
7949
7950
7951
7952
7953
7954
7955
7956
7957
7958
7959
7960
8023
8094
8173

8148
8073
8006
8007
8008
8009
8010
8011
8012
8013
8014
8015
8016
8017
8018
8019
8020
8021
8022
8093
8172

8149
8074
8075
8076
8077
8078
8079
8080
8081
8082
8083
8084
8085
8086
8087
8088
8089
8090
8091
8092
8171

1/12/2003
10/29/2002
8/23/2002
6/25/2002
5/5/2002
5/6/2002
5/7/2002
5/8/2002
5/9/2002
5/10/2002
5/11/2002
5/12/2002
5/13/2002
5/14/2002
5/15/2002
5/16/2002
5/17/2002
7/11/2002
9/12/2002
11/22/2002
2/9/2003

1/13/2003
10/30/2002
8/24/2002
6/26/2002
6/27/2002
6/28/2002
6/29/2002
6/30/2002
7/1/2002
7/2/2002
7/3/2002
7/4/2002
7/5/2002
7/6/2002
7/7/2002
7/8/2002
7/9/2002
7/10/2002
9/11/2002
11/21/2002
2/8/2003

1/14/2003
10/31/2002
8/25/2002
8/26/2002
8/27/2002
8/28/2002
8/29/2002
8/30/2002
8/31/2002
9/1/2002
9/2/2002
9/3/2002
9/4/2002
9/5/2002
9/6/2002
9/7/2002
9/8/2002
9/9/2002
9/10/2002
11/20/2002
2/7/2003

1/15/2003
11/1/2002
11/2/2002
11/3/2002
11/4/2002
11/5/2002
11/6/2002
11/7/2002
11/8/2002
11/9/2002
11/10/2002
11/11/2002
11/12/2002
11/13/2002
11/14/2002
11/15/2002
11/16/2002
11/17/2002
11/18/2002
11/19/2002
2/6/2003

4104
4179
4246
4305

4103
4178
4245
4304

4102
4177
4244
4243

4101
4176
4175
4174

8150
8151
8152
8153
8154
8155
8156
8157
8158
8159
8160
8161
8162
8163
8164
8165
8166
8167
8168
8169
8170

ORDINAL CROSS

CARDINAL CROSS

1/16/2003 ORDINAL CROSS

1/17/2003
1/18/2003
1/19/2003
1/20/2003
1/21/2003
1/22/2003
1/23/2003
1/24/2003
1/25/2003
1/26/2003 CARDINAL CROSS
1/27/2003
1/28/2003
1/29/2003
1/30/2003
1/31/2003
2/1/2003
2/2/2003
2/3/2003
2/4/2003
2/5/2003 ORDINAL CROSS

4100
ORDINAL CROSS
4099
4098
4097

4356
4355
4354
4353
4352
4351
4350
4349
4348
4347
4346
4345
4344
4289
4226
4155
4076

4303
4302
4301
4300
4299
4298
4297
4296
4295
4294
4293
4292
4291
4290
4227
4156
4077

4242
4241
4240
4239
4238
4237
4236
4235
4234
4233
4232
4231
4230
4229
4228
4157
4078

4173
4172
4171
4170
4169
4168
4167
4166
4165
4164
4163
4162
4161
4160
4159
4158
4079

4096
4095
4094
4093
4092
4091
4090
CARDINAL CROSS
4089
4088
4087
4086
4085
4084
4083
4082
4081
4080
ORDINAL CROSS