In the world of tradind, the brand new Shark pattern is emerging as a fantastic addition to the arsenal of harmonic patterns. There is a plethora of extremely formidable traders on the market. To learn how to swim like these big sharks in the e-commerce market, it is imperative to know the Shark harmonic trading pattern. Find out the details about the harmonic shark pattern in this article.
How to recognize the Shark pattern?
To reach the financial pinnacle in tradind, you need to know the strategies to get there. For more information, go to https://patternswizard.com/technical-analysis/patterns/harmonic-patterns/ . The harmonic shark pattern is very effective with the right strategy. On that note, it is first important to know how to identify a Shark pattern. A shark pattern has a structure in the form of an impulse leg marked XA and a retracement leg marked B. The continuation leg marked C must touch the Fibonacci extension at about 113% of the leg marked RA. The C leg must not cross the 168.8% mark. You will also have an accompanying XC retracement. The fibonacci extension BC is an extension of the AX leg. It is displayed in the range of 161.8% to 224%. In addition, the area of entry into the trades is represented by the overlapping portion between the fibonacci XC retracement and the fibonacci BC extension.
What does the Shark pattern tell traders?
The Shark pattern is a harmonic reversal pattern with 5 branches. This pattern strictly follows distinct fibonacci ratios. With its five-point pattern marked O, X, A, B, C, the Shark pattern is quite different from other harmonic patterns. Furthermore the terminal part of the B leg is above the X wave axis and fits well within the range of 1.13 to 1.618 fibonacci ratio.
How to trade with the Shark Harmonic Pattern?
To trade with the Shark pattern, simply enter the next candlestick opening after the harmonic indicator has found the pattern. At this point, when point C forms, make your entry into the market with a protective stop-loss. This is at the 2.618 extension of the AB leg.