The Gartley Pattern One Touch strategy is a very simple, yet highly sophisticated, binary options trading strategy. It employs touch (or one touch) options, and it has a very good success rate. Before you attempt to use this trading strategy for yourself, make sure that you understand what it is, how to use it, and what things you should be on the lookout for. It may also be helpful to use a demo trading account before you use this with real money.
Application of Gartley
The Gartley Pattern relies on Fibonacci sequences for its success. In order to get an accurate appraisal of these, you either need strong math skills of your own, or you need software that can determine this for you. Now, looking at the price chart where you determined the Fibonacci numbers, you need to look at the sequence, and then apply your trade goals to them in a zig zag pattern. If any of the strike prices that are offered by your binary options broker line up with the numbers that your software has come up with, then a touch trade is warranted. If not, the no touch trade is the right move to make.
Your goal with this strategy is to determine whether or not a given price is achievable within the given timeframe. For a workable Gartley Pattern to emerge, you want to take out a series of different expiries, the first being 15 minutes, then 30 minutes, then 1 hour, then the end of the day. The first Fibonacci number would apply to the 15 minute trade, and so on down the line. Be sure that as you progress from one timeframe to the next that you are progressing down the Fibonacci sequence as well.
Ideally, you are looking for an asset that is range bound, but has the potential to breakout of that range, either because of a news event, or because of higher than average volume. This is a powerful strategy when the right situation exists, especially if there is a lot of activity and high yield trades match up with your goals.
Do note that you can trade this strategy with any asset, and during any time of day, as long as the above noted pattern description exists. It has been tested most heavily within the Forex world, and there is even a premade set of signals that you can download and apply to your MetaTrader account, if you use this software in your binary options trading. While there has been more testing in the currency department, the concept should be fully transferable to any other asset as well.
Drawbacks to Using This
Do not be fooled by the simplicity of this trading strategy. It is only simple once all of the points have been established, and not necessarily in establishing those trade points. Fibonacci sequences, although simple in concept, can be overwhelming in complexity when applied to a real world situation. Perhaps more so than any other type of trading strategy, this is one concept that you will want to experiment quite a bit with before you use it in actual trading situations. If you have access to a demo account, use that thoroughly before real life trades occur.
The Gartley Pattern information is highly technical, and although it can be replicated with your own methods, not everyone has the math or charting skills to do so with accuracy. If you have MetaTrader 4 already, experiment with the premade tools that you can download. If not, be sure that you have a very accurate idea of what you are doing. Otherwise, you are just setting yourself up for failure.
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