Short @ C of CD Leg with SL 1.786 of XA
Shark Rules and conditions
The main differentiating factor between the Harmonic Shark and other patterns is that it relies on the 88.6% and the 113% reciprocal ratios. Once the price point at D is formed, prices rally or decline very swiftly and therefore it requires active management of the trade. In other words, you simply cannot set up the harmonic shark pattern and come back a while later to trade it as by that time price would have moved a significant distance.
The Shark pattern has the following ratios.
BC leg extends XA leg between 113% – 161.8%
CD leg extends beyond X by 113% of the XA leg
CD leg is also an extension of XA by 161.8% – 224%
Unlike other harmonic patterns, the trades are entered as follows:
Entry is at 88.6% of XA leg with stops coming in at point D
Targets can be 61.8% of CD
Shark Rules and conditions
The main differentiating factor between the Harmonic Shark and other patterns is that it relies on the 88.6% and the 113% reciprocal ratios. Once the price point at D is formed, prices rally or decline very swiftly and therefore it requires active management of the trade. In other words, you simply cannot set up the harmonic shark pattern and come back a while later to trade it as by that time price would have moved a significant distance.
The Shark pattern has the following ratios.
BC leg extends XA leg between 113% – 161.8%
CD leg extends beyond X by 113% of the XA leg
CD leg is also an extension of XA by 161.8% – 224%
Unlike other harmonic patterns, the trades are entered as follows:
Entry is at 88.6% of XA leg with stops coming in at point D
Targets can be 61.8% of CD
Trade closed: target reached
Trade active