ninjabenja
Short

Short opportunity on Stamp 4hr

BITSTAMP:BTCUSD   Bitcoin / Dollar
Many people will tell you (vehemently) that this is a bearish cypher pattern because it looks similar, with 'C' extended beyond 'A' to a 1.13 extension of XA. You'll even see the 1.13 'XA' extension for 'C' listed under the Cypher requirements on some websites. *This is not correct*. As Akil Stokes and others from Tradeempowered.com have clarified, the Cypher is defined in part by 'C' being a minimum 1.272 extension of 'XA', with a 'D' completion at .786 of the distance 'XC'. Take these requirements as fact since TradeEmpowered was the team who discovered the pattern. Remember also, that the TV advanced pattern tool does not work for properly identifying a Cypher , as it pulls the extensions from the wrong points. You have to use the fib extension tool.

So then, if it's not a Cypher what is it. Anything? ... here's where I'll get a little - ambiguous.
The Shark advanced pattern discovered by Scott Carney in 2011 is one of the newest advanced patterns, and is said to be an emerging 5-0 pattern. It also happens to look a lot like a Cypher .

I've never attempted to chart or trade the Shark until now, so allow me some room for error but here is my understanding of the requirements:

Shark Pattern Basics
• Different from the M-type and W-type alignments in
the other patterns but the same Harmonic Trading principles apply.
• Comprised of two independent price segments –
1. Failed Harmonic Impulse Wave
2. Extreme Harmonic Impulse Wave
• The Shark Pattern is dependent upon the powerful
88.6% retracement and the 113% Reciprocal Ratio.
• Represents a temporary extreme structure that seeks to
capitalize on the extended nature of the Extreme Harmonic Impulse Wave.
• Demands immediate change in price action character immediately following pattern completion.
• Extreme Harmonic Impulse Wave utilized depends upon location of 88.6% level
– these are minimum requirements.
snapshot

Bearish reversal is expected. Targets are .382 and .618 as listed on the chart. Stops would be above 'X' or above the 1.13 extension of X'A'.

Here is more information on the Shark pattern: http://harmonictrader.com/sharkpdf.pdf
...and here is information on the 5-0 pattern: http://www.harmonictrader.com/The5-0Pattern.pdf
majika
a year ago
I am glad I stumbled upon this chart and your insight into what you have outlined in the shark pattern basics section. I will be sure to take a long hard look over the links posted over at http://harmonictrader.com/sharkpdf.pdf and the 5-0 pattern. Cheers
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ninjabenja PRO majika
a year ago
Since posting this chart (which unfortunately failed) I've done more research into the Shark and 5-0 pattern it originated from. This research lead to the creation of the new Cypher tool which was recently added to the TV charting tool kit. Here is a bit of what I found. The TL;DR is that you use the standard pattern tool to look for Shark patterns. http://i.imgur.com/3i6SajH.png

Right now I have no measure for how successful they are with btc, but I am starting to identify them better... this one is likely to fail as well :p
snapshot
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