How to trade when you see the Shark pattern?
The ideal method used to trade a shark pattern is quite different from that used for other chart patterns. The take profit can be at 50 to 61.8 percent of BC .
The way to trade this pattern is to go in at the open of the next candlestick after the harmonic indicator has detected the pattern. As soon as the C-leg forms, enter the market with a protective stop-loss at the 2.618 extensions of AB swing-leg.
Drawing the pattern
Click on the indicator of the harmonic pattern which can be found on the right-hand side toolbar of the platform
Determine on the chart the starting point 0, which can be any swing high or low point on the chart
After locating the first swing high/low point, follow the market swing wave movements
Traders need to have 4 points or 4 swings high/low points that join together to form the harmonic crab pattern strategy. Each swing leg has to be validated and stick to the Fibonacci ratios of the shark pattern forex.
Trading the pattern
Buy at point D, which has to satisfy the requirement CD = 1.13 OX segment. The D to X can be found anywhere between 0.886 to 1.13, but it is best to take trades using an ideal 1.13 extension.
Stop-loss
The stop-loss can be placed below the 1.150 Fibonacci extensions of XA at point C. As the market begins to go towards the first take profit, move it after D leg. This is the best place to hide the stop-loss because any break below will automatically invalidate the Fibonacci requirements for a shark pattern.
Just as it is with any new pattern, you need to be cautious when trading this pattern. You should only trade the best price structure that fits into all the Fibonacci ratios with great precision. Be picky! The shark harmonic trading strategy works very well as a strong counter-trend strategy.
The ideal method used to trade a shark pattern is quite different from that used for other chart patterns. The take profit can be at 50 to 61.8 percent of BC .
The way to trade this pattern is to go in at the open of the next candlestick after the harmonic indicator has detected the pattern. As soon as the C-leg forms, enter the market with a protective stop-loss at the 2.618 extensions of AB swing-leg.
Drawing the pattern
Click on the indicator of the harmonic pattern which can be found on the right-hand side toolbar of the platform
Determine on the chart the starting point 0, which can be any swing high or low point on the chart
After locating the first swing high/low point, follow the market swing wave movements
Traders need to have 4 points or 4 swings high/low points that join together to form the harmonic crab pattern strategy. Each swing leg has to be validated and stick to the Fibonacci ratios of the shark pattern forex.
Trading the pattern
Buy at point D, which has to satisfy the requirement CD = 1.13 OX segment. The D to X can be found anywhere between 0.886 to 1.13, but it is best to take trades using an ideal 1.13 extension.
Stop-loss
The stop-loss can be placed below the 1.150 Fibonacci extensions of XA at point C. As the market begins to go towards the first take profit, move it after D leg. This is the best place to hide the stop-loss because any break below will automatically invalidate the Fibonacci requirements for a shark pattern.
Just as it is with any new pattern, you need to be cautious when trading this pattern. You should only trade the best price structure that fits into all the Fibonacci ratios with great precision. Be picky! The shark harmonic trading strategy works very well as a strong counter-trend strategy.
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