A bearish Gartley pattern is a harmonic chart pattern used in technical analysis to identify potential reversals in the price of an asset. This pattern typically indicates a bearish trend reversal and suggests that the price of the asset may decline after the pattern is completed.
The bearish Gartley pattern consists of four price movements (legs) that create a distinctive M-shaped formation. Here are the key components and the Fibonacci retracement levels associated with the bearish Gartley pattern:
1. **XA Leg**: This is the initial bullish price movement.
2. **AB Leg**: The price reverses from point X and retraces to a level that is typically 61.8% of the XA leg.
3. **BC Leg**: The price then moves in the direction of the XA leg but does not surpass point A, typically retracing 38.2% to 88.6% of the AB leg.
4. **CD Leg**: The final leg moves in the direction of the AB leg, usually extending to 127.2% to 161.8% of the BC leg.
5. **D Point**: This is the completion point of the pattern, where the price is expected to reverse. It is typically at the 78.6% retracement of the XA leg.
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