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A bearish Gartley is forming on the CAD/JPY.  So far this pattern is moving very symmetrically in both price and time.  The trade would also enter just above the 78.6% Fibonacci retracement of YZ on the Daily Chart.  The Gartley is also obviously a double top.  This a well above average trade setup.

We are looking to sell the CAD/JPY if it rises to 84.90 (Point D).  Point D is located at the convergence of the following points:

100% Fibonacci retracement of XA.

161.8% Fibonacci extension of BC.

AB=CD.

78.6% Fibonacci retracement of YZ on the Daily Chart..

If RSI rises above 70.

This is a fairly straightforward trade so we will jump into possible red flags that could invalidate this trade.  We will watch for long bars in the CD leg.  If there are long bars near the completion of the pattern, we will not take the trade.  If the pair comes within 10 pips of reaching our entry, does not enter, and reaches T1 before entering, the trade is invalid.  The trade is also invalid if the pair falls below 86.50 before hitting our entry.

To recap, we will look to sell the CAD/JPY at 88.33 with our stop placed at 88.68.  Our initial profit targets are 87.81 (38.2% of CD) and 87.39 (61.8% of CD).

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  • Daily Chart - Trade would enter just above the 78.6% Fibonacci retracement of YZ.
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  • 1hr Chart - Bearish Gartley; sell at 88.33.

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