The bearish shark pattern is one type of the harmonic chart pattern. The Harmonic Shark Pattern has some similarities with the Crab harmonic pattern. The harmonic chart patterns(bearish and bullish) are more complex because it deals with the use of the fibonacci retracement and extention ratios. The following below are the steps that needs to be followed:
0 - Price drops from 0 to a low of X, then retraces up to A. This indicates the start of a move.
AB - retrace between 1.13 – 1.618 Fibonacci Extension of XA leg
BC - extends to 113% Fibonacci extension of 0X leg;
C down to the possible target - Poses a target of 50% Fibonacci Retracement of BC leg.
Once price turns at C, short the BTCUSD. Because this pattern has such a high failure rate (30%).
Always wait for the C LEG to be completed.
VERDICT:
SELL/SHORT: $4452 up to $4586
BUY:$3869
STOP LOSS:$4755
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.
0 - Price drops from 0 to a low of X, then retraces up to A. This indicates the start of a move.
AB - retrace between 1.13 – 1.618 Fibonacci Extension of XA leg
BC - extends to 113% Fibonacci extension of 0X leg;
C down to the possible target - Poses a target of 50% Fibonacci Retracement of BC leg.
Once price turns at C, short the BTCUSD. Because this pattern has such a high failure rate (30%).
Always wait for the C LEG to be completed.
VERDICT:
SELL/SHORT: $4452 up to $4586
BUY:$3869
STOP LOSS:$4755
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.