GARTLEY TRADER

By Ross Beck, FCSI

For the week of October 19 – 23, 2009

The Gartley Trader is a weekly publication that focuses on high probability trade
set ups in the U.S. Futures and spot Forex markets. The Gartley Trader is a purely
technical newsletter with a focus on pattern recognition, market geometry and
Fibonacci ratio analysis. As such there will be no fundamental bias as to whether
the trade set ups discussed should be long or short. It will be left up to the
individual to filter these setups with additional fundamental analysis. In addition
to the set ups, all examples will use SEME (Single Entry Multiple Exit) and SISO
(Scale In Single Out) advanced money management techniques. Data for our
entry, exit and resulting profit or loss will be based on continuous charts versus
individual contract months. Data is obtained from IQFeed. For further
information, go to www.gartleytrader.com

Weekly Summary
Exchange Contract Chart Setup Price Order Date

CME/FOREX USD/JPY 60 Min Bearish Gartley 91.60 Sell New

ICE SB 60 Min Bearish Gartley 24.50 Sell New

“Gartley Trader” is written by Ross Beck, FCSI, All rights reserved. Charting by Market Analyst. www.gartleytrader.com
Trade Setups for the Week
CME/FOREX USD/JPY

We have a potential Bearish Gartley pattern on the 60 Minute Fibonacci Retracement 78.6%
continuous USD/JPY chart. If the USD/JPY rallies to 91.60
Quadrilateral Yes
before it trades below 88.81, the bearish Gartley pattern
should be complete and we will want to enter with limit orders Gann Box Yes
on the short side. Depending on your account size you may
Wolfe Wave Yes
choose to use mini contacts or an at the money option at the
entry price. If the option doubles in price, liquidate. The Arc Yes
specific technical methods used on this chart are summarized
in the table to the right. Andrews Pitchforks No

Time Retracement Yes

“Gartley Trader” is written by Ross Beck, FCSI, All rights reserved. Charting by Market Analyst. www.gartleytrader.com
Trade Management
Our two favorite methods of entering/exiting our trade set ups are with SEME (single entry,
multiple exits) and SISO (scale in, single out). SEME dictates that we enter with a minimum of
three contracts and exit the position in thirds. The SISO strategy is a pure martingale and will
double the position size at specified intervals if the position moves against us. Once the position
moves in our favor by a single interval, we will liquidate all open positions. The SISO strategy is
VERY AGGRESSIVE but has the highest probability of winning.

Single Entry Multiple Exits (SEME)

Entry Order - Sell three contracts at 91.60 with limit orders. Enter the protective buy stop on all
three contracts at 92.60. Set the first profit target to buy one contract on a limit at 91.10.

If the first target is hit - Move the protective buy stop on the remaining two contracts to 92.10
and set the second profit target to buy one contract at 90.60.

If second target hit - Move the stop on the remaining open position to 91.60 and use a three
bar trailing stop on the daily chart as long as the three bar trailing stop is below 91.60.

Three Bar Trailing Stop - The three bar trailing stop in the above example would put a stop
above the highest high of the previous three bars (ignoring inside bars) on a daily chart.

Scale In Single Out (SISO)

Entry Order - Sell one contract at 91.60 limit and set the profit target at 90.60 to buy.

If the market rallies to 92.60 - Sell two contracts and place limit orders to buy three contracts
at 91.60.

If market rallies to 93.60 - Sell four contracts and place limit orders to buy seven contracts at
92.60

If market rallies to 94.60 - PTP! (Pull the plug)

“Gartley Trader” is written by Ross Beck, FCSI, All rights reserved. Charting by Market Analyst. www.gartleytrader.com
Trade Setups for the Week
ICE Sugar

We have a potential bearish Gartley pattern on the 60 minute Fibonacci Retracement 78.6%
continuous SB chart. If SB rallies to 24.50 before it trades below
Quadrilateral Yes
22.51, the bearish Gartley pattern should be complete and we
will want to enter with limit orders on the short side. Gann Box Yes
Depending on your account size you may choose to use mini
Wolfe Wave No
contacts or an at the money option at the entry price. If the
option doubles in price, liquidate. The specific technical Arc Yes
methods used on this chart are summarized in the table to the
right. Andrews Pitchforks No

Time Retracement Yes

“Gartley Trader” is written by Ross Beck, FCSI, All rights reserved. Charting by Market Analyst. www.gartleytrader.com
Trade Management

Single Entry Multiple Exits (SEME)

Entry Order – Sell three contracts at 24.50 with limit orders. Enter the protective buy stop on all
three contracts at 25.50. Set the first profit target to buy one contract on a limit at 24.00

If the first target is hit - Move the protective buy stop on the remaining two contracts to 25.00
and set the second profit target to buy one contract at 23.50.

If second target hit - Move the stop on the remaining open position to 24.50 and use a three
bar trailing stop on the daily chart as long as the three bar trailing stop is below 24.50.

Three Bar Trailing Stop - The three bar trailing stop in the above example would put a stop
above the highest high of the previous three bars (ignoring inside bars) on a daily chart.

Scale In Single Out (SISO)

Entry Order – Sell one contract at 24.50 limit and set the profit target at 23.50 to buy.

If the market rallies to 25.50 - Sell two contracts and place limit orders to buy three contracts
at 24.50

If market rallies to 26.50 - Sell four contracts and place limit orders to buy seven contracts at
25.50

If market rallies to 27.50 - PTP! (Pull the plug)

Entry strategies like the Gartley Pattern are only one part of a trading strategy. The most
important aspect of trading is the exit.

“Gartley Trader” is written by Ross Beck, FCSI, All rights reserved. Charting by Market Analyst. www.gartleytrader.com
Gartley Trader News

Gartley Module for Market Analyst Software

It’s official! The Gartley Trader module for Market Analyst is now available. Components
included are the Gartley Pattern Identifier, Gartley Profit and Stop Levels for trading multiple
contracts, and the Gartley Trailing Stop (3 Bar Trailing Stop.) For additional information, click
here.

We are on Twitter!
Updates and comments will now be available on Twitter. Sign up for free at www.twitter.com
and follow Gartley Trader.

“Introduction to the Gartley Pattern” Webinar

Ross Beck, FCSI recently conducted a live webinar for Peregrine Financial Group. If you missed
it, the session can be viewed here.

New Gartley Book Out Soon!

"The Gartley Pattern" by Ross Beck, FCSI will be released in early 2010. Initial availability will be
limited so if you would like to be put on the waiting list for this highly anticipated release,
please click here.

Ross Beck, FCSI

“Gartley Trader” is written by Ross Beck, FCSI, All rights reserved. Charting by Market Analyst. www.gartleytrader.com