A bearish Shark pattern has been completed on USDCAD 4H timeframe. Shark is one of the most probable patterns as the completion D point naturally falls at a significant level. In this case D point is the 3rd retest of the 1.25620 level.
The beauty is that even if price fails to reach the level and falls short, but achievs 0.886 retracement of the XC distance, then it is counted as a valid Shark pattern.
Current price is nearly at the bottom boundary of the PRZ and we might see a reversal anywhere within the PRZ.
Average target for the trade would be 61.8% of the XC distance with a SL above the X point.
I analyzed why it failed and i think there is a Wolfe wave .Line up trough second X point.It's not easy to notice.I would also took the trade short at that moment..
fxmillions
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Wolfe wave? sorry about my ignorance, but first time I'm hearing about it. Thanks for the insight. I'm pretty scared when I hear new terms, probably because Im scared of wanting to spend days or even months learning them :)
glaxo
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This pattern is just failed :(
fxmillions
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yep. but now we can look for an alternate shark, for the D point to complete at 1.13 extension...