Technical Trading Lessons: H.M. Gartley

There comes a time in every trader or investor’s life when they stumble upon a piece of knowledge that changes everything. For me, that moment was discovering H. M. Gartley’s seminal work, Profits in the Stock Market. This 1935 classic didn’t just teach me about harmonic patterns or technical analysis; openned my eyes to be able decode the market’s collective psyche. It was the “aha!” moment that connected dots with other lessons learned in human behaviour with really helped my quest for market success.

But as the years went by, another realization hit me just as hard: mastering charts and patterns was only part of the equation. True outperformance in investing comes when you upgrade the hardware and software of your most important tool—your own body and mind. That insight led to writing The Energetic Investor, where I explore how physical and mental energy drive better decision-making, not just in investing but in life.

This article is a reflection on the interplay between Gartley’s teachings, herd behavior, and personal energy management, culminating in a new framework that marries stock market strategies with biopsychology and modern science.

Lessons from Gartley

H. M. Gartley’s Profits in the Stock Market is often referenced as one of the cornerstones of technical analysis. His introduction of the Gartley Pattern revolutionized how traders analyze markets. This harmonic charting pattern is rooted in the idea that human psychology drives market price movements in repeatable patterns.

The Power of Patterns

Investors are often compared to a herd, acting and reacting en masse, influenced by fear, greed, and market sentiment. Gartley understood this well, and his work analyzes these behaviours through identifiable price formations like the “Gartley 222 pattern.” These patterns hinge on Fibonacci levels (38.2%, 61.8%, etc.), which reflect natural ratios found not just in financial markets, but in nature itself. Recognizing this made Gartley’s teachings feel almost timeless, like understanding a universal truth.

What this means for modern investing is clear: market behaviour is not random. By learning to spot these patterns during stable market conditions (what I call “news vacuums”), you’re essentially reading the herd’s movements, much like a poker player detecting tells. The key is knowing when the herd stays steady and when news disrupts, shrinks or grows it.

The Importance of Discipline

Another timeless insight from Gartley is the focus on patience and risk management. It’s tempting to chase trades in today’s fast-paced markets, but the true wins happen when you wait for high-probability setups, often confirmed by patterns and supported by volume trends.

Herd Mentality Meets Biopsychology

Expanding on Gartley’s insights, I began seeing parallels between herd behaviour in markets and human biology. Both are systems driven by patterns, emotions, and energy. For example, just like a signaling stock price breakout captures attention, dopamine spikes in our brains reinforce behaviours when we predict outcomes correctly.

But what happens when the herd grows? This is where news or trends shift market dynamics dramatically. A sudden surge of new investors alters behavior, making the “herd” more bullish and reducing dips as people clamor to ride the wave. The same psychological rules apply to us as individual investors—we see what’s happening and fear missing out, so we make decisions driven by emotion.

This realization is what led me deeper into understanding biopsychology and epigenetics.

Upgrading Your Personal Operating System

Investing is a mental game that demands strategy, clarity, and resilience. Think about it this way: If your brain and body are operating on outdated “firmware,” you’ll struggle to manage stress, think clearly, or capitalize on your strategy. Modern science shows that optimizing your biology can be the ultimate edge in high-stakes environments like trading.

Here are a few concepts I’ve explored in The Energetic Investor:

1. The Role of Energy in Decision-Making

Your body doesn’t just produce ATP (energy) to keep you moving; your mitochondria also drive neural plasticity and cognitive focus. When you’re tired or under stress, your ability to think critically nosedives. Recognizing this, I emphasize practices like intermittent fasting, saunas, and red-light therapy to enhance mitochondrial function and cellular resilience. Think of it like upgrading your hardware for energy efficiency.

2. Epigenetics and Personal Performance

Epigenetics reveals how your environment and experiences impact gene expression. For instance, childhood stress or trauma doesn’t just shape your emotional lens; it alters how you respond to financial risks. By addressing these epigenetic “programs”—through mindfulness, therapy, or targeted biohacks—we can rewrite our low-level biological scripts that might otherwise cloud judgment. Most importantly, we need to journal and be honest with ourselves. Look at our current set of habits which guide our default behaviours and employ strategies to change habits at the root level.

3. Relaxed Readiness and Herd Observation

One term I use is “relaxed readiness”—the state of being focused without tension. This aligns with flow-state research and allows clearer attention to subtle investment signals, whether it’s detecting irrational exuberance in the herd or staying disciplined during volatility. Techniques like breathwork, visualization, and balancing mental recovery time help achieve this peak level of awareness.

Bridging Market Cycles and Biology

Through my blending of Gartley’s and other technical trading lessons and biopsychology, I’ve seen this fascinating interplay between market cycles and personal cycles. For example, the natural rhythms of markets align closely with the concept of energy oscillations within our biology.

Bull Markets as Growth Phases

Bull markets resemble periods of growth in nature when resource abundance fuels rapid expansion. This aligns with high dopamine levels and optimism. Staying in tune with this, both mentally and emotionally, helps ride these trends without letting greed take over.

Bear Markets as Reset Phases

Just as nature has seasons, bear markets clear excesses and recalibrate expectations. These times demand a calm and contrarian mindset, much like a mitochondria reset in biology. Detoxing from poor investments or poor habits during these phases sets the stage for future peak performance

My book, “The Energetic Investor” now available on Amazon