Introduction to the Shark Harmonic Pattern
The Shark harmonic pattern is one of the newest and most powerful harmonic patterns, discovered in 2011 by Scott Carney. This pattern stands out because:
✔ Exceptionally accurate for spotting strong reversals
✔ Uses unconventional Fibonacci ratios (88.6%, 113%, 161.8%)
✔ Distinctive shape resembling shark fins on price charts
✔ Works across all markets (Forex, stocks, crypto)
2. Shark Pattern Structure & Fibonacci Ratios
Unlike traditional harmonic patterns, the Shark uses 5 key points (O, X, A, B, C):
| Wave | Fibonacci Ratio | Description |
|---|---|---|
| OX | – | Initial impulse move |
| XA | 113% – 161.8% of OX | Must exceed point X |
| AB | 113% – 161.8% of XA | Deep retracement |
| BC | 88.6% – 113% of OX | Reversal zone (PRZ) |
Bullish vs. Bearish Shark
- Bullish Shark: Forms at bottoms (Buy at C)
- Bearish Shark: Forms at tops (Sell at C)
3. How to Identify the Shark Harmonic Pattern (Step-by-Step)
- OX Wave: Look for strong initial momentum
- XA Wave: Must extend 113%-161.8% beyond OX
- AB Wave: Retraces 113%-161.8% of XA
- BC Wave: Reaches 88.6%-113% of OX (PRZ)
4. Trading Strategy
Entry Points
- Buy (Bullish) at point C with reversal confirmation
- Sell (Bearish) at point C with reversal confirmation
Stop Loss Placement
- Bullish: Below point C
- Bearish: Above point C
Take Profit Targets
| Target | Fibonacci Level |
|---|---|
| TP1 | 38.2% of CB |
| TP2 | 61.8% of CB |
| TP3 | 100% of CB |
5. Confirmation Signals
✔ Price Action: Pin bars/engulfing at point C
✔ RSI/MACD Divergence
✔ Volume Spike at reversal
✔ Trendline/S&R Confluence
6. Shark vs. Crab Pattern
| Feature | Shark Pattern | Crab Pattern |
|---|---|---|
| Reversal Point | C (No D point) | D |
| XA Ratio | 113%-161.8% | 161.8%-224% |
| Accuracy | Best for violent reversals | Best for extended moves |
7. Frequently Asked Questions (FAQ)
Q1: Best markets for Shark pattern?
A: Highly effective in Forex (EUR/USD) and Crypto (BTC) due to volatility.
Q2: Optimal timeframes?
A: 4H/Daily charts provide most reliable signals.
Q3: How to filter false signals?
A: Require at least 2 confirmations (e.g., RSI + candlestick pattern).
8. Professional Trading Tips
- Practice on historical charts before live trading
- Combine with trend analysis for higher accuracy
- Avoid news events to prevent false breakouts
- Use partial profits (Take 50% at TP1)
9. Conclusion
The Shark harmonic pattern offers:
✅ Precise reversal zones with unique Fibonacci ratios
✅ High-probability trades when confirmed
✅ Adaptability across all financial markets
✅ Be ware of Economic News .
🚀 For best results:
- Backtest the pattern extensively
- Combine with other technical tools
Best Product To Detect Harmonic patterns automatically is : ON Trade Waves Patterns
Example of Shark Harmonic Pattern:
