How to Trade by the Shark Pattern?
Author: Maks Artemov
Dear Clients and Partners,
Shark is a price pattern that consists of five impulses and promises soon trend reversal. This pattern is a rather recent phenomenon; it was first singled out and described in 2011 by Scott M. Carney. The pattern belongs to Harmonic trading designed by Harold M. Gartley and described in his book "Profits in the Stock Market".
Shark is simular to such graphic analysis patterns as Double Top and Double Bottom, but in essense, it is an updated 5-0 pattern. Detecting reversal points in the Shark pattern requires the use of Fibonacci lines that are essential for the pattetn: without them, we cannot be sure if the pattern has formed correctly.
In this article, we will discuss the rules by which the Shark forms on the chart and the principles, by which we open positions with this pattern.
How does the Shark pattern form?
The Shark pattern consists of five points: 0, X, A, B, C — that form on the chart one after tge other. A complete pattern looks like the shark's fin or its jaws swung open; to my mind, however, this is all very individual.
Seeing all the five points in the chart, a trader might conclude that here goes the shark; nonetheless, without Fibonacci levels, you cannot be 100% sure.
How to confirm a Shark pattern by Fibonacci levels?
All trading terminals feature an instrument called Fibonacci Lines with basic settings, but they do not suit us. To check your presumable Shart pattern, delete all the default levels (except "0") and write in 0.866, 1.13, 1.618, 2 24. See below this settings amendments in MetaTrader 4/5:
In more detail, you can read about Fibo levels in these two terminals in the following article:
How does a bearish Shark form?
A bearish Shark pattern forms in a mirror-like wave:
Upon testing point X, the quotations form a minor correction, and the pullback ends in point A. Upon testing point A, the quotations form another descending impulse, renewing the lows in point B. Upon testing point B, the quotations begin another correction that ends in point C. This wave of growth is the largest of all.
Read more at R Blog - RoboForex
Sincerely,
RoboForex team
Author: Maks Artemov
Dear Clients and Partners,
Shark is a price pattern that consists of five impulses and promises soon trend reversal. This pattern is a rather recent phenomenon; it was first singled out and described in 2011 by Scott M. Carney. The pattern belongs to Harmonic trading designed by Harold M. Gartley and described in his book "Profits in the Stock Market".
Shark is simular to such graphic analysis patterns as Double Top and Double Bottom, but in essense, it is an updated 5-0 pattern. Detecting reversal points in the Shark pattern requires the use of Fibonacci lines that are essential for the pattetn: without them, we cannot be sure if the pattern has formed correctly.
In this article, we will discuss the rules by which the Shark forms on the chart and the principles, by which we open positions with this pattern.
How does the Shark pattern form?
The Shark pattern consists of five points: 0, X, A, B, C — that form on the chart one after tge other. A complete pattern looks like the shark's fin or its jaws swung open; to my mind, however, this is all very individual.
Seeing all the five points in the chart, a trader might conclude that here goes the shark; nonetheless, without Fibonacci levels, you cannot be 100% sure.
How to confirm a Shark pattern by Fibonacci levels?
All trading terminals feature an instrument called Fibonacci Lines with basic settings, but they do not suit us. To check your presumable Shart pattern, delete all the default levels (except "0") and write in 0.866, 1.13, 1.618, 2 24. See below this settings amendments in MetaTrader 4/5:
In more detail, you can read about Fibo levels in these two terminals in the following article:
How does a bearish Shark form?
A bearish Shark pattern forms in a mirror-like wave:
Upon testing point X, the quotations form a minor correction, and the pullback ends in point A. Upon testing point A, the quotations form another descending impulse, renewing the lows in point B. Upon testing point B, the quotations begin another correction that ends in point C. This wave of growth is the largest of all.
Read more at R Blog - RoboForex
Sincerely,
RoboForex team