Gartley Trader

By Ross Beck, FCSI

For the week of July 6, 2009 – July 10, 2009

The Gartley Trader is a weekly publication that focuses on high probability trade
set ups in the U.S. Futures market. 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 ESignal and Peregrine Financial Group
FOREX. For further information, go to www.gartleytrader.com

Weekly Summary
Exchange Contract Month Setup Price Order Date

NYMEX miNY NG Front Bull Retest 3.200 Buy New

CBOT O Front Bull Retest 165.0 Sell New

“Gartley Trader” is written by Ross Beck, FCSI, All rights reserved. Charting by Dynamic Trader. www.gartleytrader.com
Trade Setups of the Week
NYMEX miNY Natural Gas

Trade Set Up
We have a bullish retest setting up in the miNY NG on the daily chart. The pattern is based on a
100% Fibonacci retracement and a simple ABC zigzag that completes at 3.2000. If NG drops this
week to 3.200 before it goes above 4.130, the bullish retest pattern will be complete and we
will want to enter with limit orders on the long side.

“Gartley Trader” is written by Ross Beck, FCSI, All rights reserved. Charting by Dynamic Trader. www.gartleytrader.com
Entry/Exit Strategies
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 - Buy three contracts at 3.20 with limit orders. Enter the protective sell stop on all
three contracts at 3.00. Set the first profit target to sell one contract on a limit at 3.30.

If the first target is hit - Move the protective buy stop on the remaining two contracts to 3.10
and set the second profit target to sell one contract at 3.40.

If second target hit - Move the stop on the remaining open position to 3.20 and use a three bar
trailing stop on the weekly chart as long as the three bar trailing stop is above 3.20.

Three Bar Trailing Stop - The three bar trailing stop in the above example would put a stop
below the lowest low of the previous three bars (ignoring inside bars) on a weekly chart.

Scale In Single Out (SISO)

Entry Order - Buy one contract at 3.20 limit and set the profit target at 3.40 to sell.

If the market declines to 3.00 - Buy two contracts and place limit orders to sell three contracts
at 3.20.

If market declines to 2.80 - Buy four contracts and place limit orders to sell seven contracts at
3.00

If market declines to 2.60 - PTP! (Pull the plug)

“Gartley Trader” is written by Ross Beck, FCSI, All rights reserved. Charting by Dynamic Trader. www.gartleytrader.com
Trade Setups for the Week
CBOT Oats

Trade Set Up
We have a Bullish Retest pattern in Oats on the daily chart. The pattern is based on a 100%
Fibonacci retracement on the impulsive trend move up. In addition, a simple ABC correction
against the downtrend completes at 166.5. If O declines this week to 165.0 before it rallies
above 233.0, the bullish retest pattern might be complete and we may choose to enter with
limit orders on the long side.

“Gartley Trader” is written by Ross Beck, FCSI, All rights reserved. Charting by Dynamic Trader. www.gartleytrader.com
Entry/Exit Strategies

Single Entry Multiple Exits (SEME)

Entry Order – Buy three contracts at 165.0 with limit orders. Enter the protective sell stop on all
three contracts at 155.0. Set the first profit target to sell one contract on a limit at 170.0.

If the first target is hit - Move the protective sell stop on the remaining two contracts to 160.0
and set the second profit target to buy one contract at 175.0.

If second target hit - Move the stop on the remaining open position to 165.0 and use a three
bar trailing stop on the weekly chart as long as the three bar trailing stop is above 165.0.

Three Bar Trailing Stop - The three bar trailing stop in the above example would put a stop
below the lowest low of the previous three bars (ignoring inside bars) on a weekly chart.

Scale In Single Out (SISO)

Entry Order – Buy one contract at 165.0 limit and set the profit target at 175.0 to sell.

If the market declines to 155.0 - Buy two contracts and place limit orders to sell three contracts
at 165.0

If market declines to 145.0 - Buy four contracts and place limit orders to sell seven contracts at
155.0

If market declines to 135.0 - 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 Dynamic Trader. www.gartleytrader.com
Gartley Trader News
“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 before the end of 2009. 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.

Special for Purchasers of Dynamic Trader Software

Dynamic Trader is the preferred software package used for our Fibonacci time and price analysis in the Gartley
Trader. Subscribers to the Gartley Trader will receive a free month of the Gartley Trader ($99 Value) when you
purchase Dynamic Trader. To take advantage of this offer, click here.

Special for Subscribers to Market Analyst Software

Market Analyst is the preferred software package used for our Gann analysis in the Gartley Trader. Subscribers
to the Gartley Trader will receive an additional month of the Gartley Trader ($99 Value) when you lease any
version of Market Analyst. To try a 14 day trial of Market Analyst, click here.

Managed Accounts
Ross Beck, FCSI is now accepting funds to manage. Minimum investment is 500K. To inquire, click here.

Ross Beck, FCSI

To obtain a free subscription to the Gartley Trader Newsletter, go to www.gartleytrader.com

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