What Is The Shark pattern? also called Carny-pattern
The shark pattern is a five-leg trend reversal pattern identified as O, X, A, B, and C. Visually, while in an up-trend, the shark pattern will form double tops at the B point, while in a downtrend, it will form a double bottom also at the B point. For the harmonic shark pattern formation to be valid, the formation of the harmonic candlestick must meet several Fibonacci ratios to be valid.
The points on the Shark pattern are five in number (O, X, A, B, and C) and have a strong correlation to Fibonacci ratios and price movement, with the market expected to reverse from point C during its swing wave movement.
. . 5 points = 4 logs .... common sense rule . .
. .
Shark Structure: (4 legs)
1) OX: The price travels higher from point O to point X with an impulsive move in nature.
2) XA: XA leg retraces from X to A. This retracement level of XA must be less than 100% of the OX leg. --- A>O for bullish
3) AB: The price movement of point AB swings higher to a level of point X, thereby moving in an extension of 113% to 161% of the XA swing.
4) BC: the price begins to move slowly from point B, and travels to a range low of 161% to 224% of the length of the XA leg with the pattern terminating at point C.
How To Identify The Shark Harmonic Pattern
The shark pattern is a five-leg trend reversal pattern identified as O, X, A, B, and C. Visually, while in an up-trend, the shark pattern will form double tops at the B point, while in a downtrend, it will form a double bottom also at the B point. For the harmonic shark pattern formation to be valid, the formation of the harmonic candlestick must meet several Fibonacci ratios to be valid.
The points on the Shark pattern are five in number (O, X, A, B, and C) and have a strong correlation to Fibonacci ratios and price movement, with the market expected to reverse from point C during its swing wave movement.
. . 5 points = 4 logs .... common sense rule . .
. .
Shark Structure: (4 legs)
1) OX: The price travels higher from point O to point X with an impulsive move in nature.
2) XA: XA leg retraces from X to A. This retracement level of XA must be less than 100% of the OX leg. --- A>O for bullish
3) AB: The price movement of point AB swings higher to a level of point X, thereby moving in an extension of 113% to 161% of the XA swing.
4) BC: the price begins to move slowly from point B, and travels to a range low of 161% to 224% of the length of the XA leg with the pattern terminating at point C.
How To Identify The Shark Harmonic Pattern
- The AB leg retraces between 113% and 161.8% of the XA leg's Fibonacci ratio.
- The BC leg extends beyond the O point by 113% of the OX leg's Fibonacci ratio.
- The BC price swing is a 161.8% to 224% extension of the XA wave.
- The length from O to C ranges from 88% to 113%.
- The BC leg is at 50% of the AB leg's Fibonacci retracement level.
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