Copyright Harmonic Trader L.L.C.
• The Shark Pattern is the structure that precedes the 5-0 formation.
• Possesses an Extreme Harmonic Impulse Wave that retests defined support/resistance that converges in the area of the 0.886 retracement – 1.13 extension.
• Utilizes the powerful 88.6% support/retracement as a minimum requirement.
• Look for closest convergence of Extreme Harmonic Impulse Wave (1.618-2.24) with the 88.6% minimum retracement as a minimum level.
• Utilizes “natural” state of extreme impulse (reactionary) move against prior support/resistance level.
• Typically a counter trend move.
The Shark Pattern
Copyright Harmonic Trader L.L.C.
• The Shark Pattern is represents a temporary extreme structure that seeks to capitalize on the extended nature of the Extreme Harmonic Impulse Wave.
• Since it precedes the 5-0, the eventual 50% level acts as the optimal profit target.
• Requires an active trade management strategy. • Demands immediate change in price action character
immediately following minimum test of 88.6% level as long as minimum 1.618 Extreme Harmonic Impulse Wave has been tested.
• Extreme Harmonic Impulse Wave utilized depends upon location of 88.6% level.
Trading The Shark Pattern
Copyright Harmonic Trader L.L.C.
Bullish Shark Pattern
B
A
X
0
C
Bullish Shark Pattern Potential Reversal Zone (PRZ)
Copyright HarmonicTrader L.L.C.
_________________ 0.886 0B ______________ 1.618-2.24AB ______________1.13 0B XXXXXXXXXXXXXXX (Stop Loss Limit)
X
A
0
B
C
EuroDollar (EUR_A0-FX): 15-Minute Bullish Shark Pattern
C
0.886
EuroDollar (EUR_A0-FX): 15-Minute Bullish Shark Pattern Potential Reversal Zone (PRZ)
X
A
0
B
C EuroDollar (EUR_A0-FX): 15-Minute Bullish Shark Pattern>Bearish 5-0
D
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C
EuroDollar (EUR_A0-FX): 15-Minute Bullish Shark Pattern + Bearish 5-0
Potential Reversal Zones (PRZ)
D
Copyright Harmonic Trader L.L.C.
Bearish Shark Pattern
B
A
X
0 0.886-1.13
C
XXXXXXXXXXXXXXX 1.13XB (Stop Loss Limit) ________________ 1.618-2.24AB ________________ 0.886XB
Bearish Shark Pattern Potential Reversal Zone (PRZ)
Copyright Harmonic Trader L.L.C.
X
A
0
B
C
Canadian Dollar (CAD_A0-FX): Daily Bearish Shark Pattern
A
C
Canadian Dollar (CAD_A0-FX): Daily Bearish Shark Pattern
Potential Reversal Zone (PRZ)
X
A
0
B
C
Canadian Dollar (CAD_A0-FX): Daily Bearish Shark Pattern>Bullish 5-0
B
C
Canadian Dollar (CAD_A0-FX): Daily
Bearish Shark Pattern>Bullish 5-0 Potential Reversal Zones
D
Copyright Harmonic Trader L.L.C.
• This is a distinct structure but different than the M-type and W-type of harmonic patterns.
• Precursor to the 5-0 Pattern. • Works extremely well retesting prior support/resistance
points (0.886/1.13) as a strong counter-trend reaction. • The extended AB Extreme Harmonic Impulse Wave must
be at least a 1.618 (can be as much as 2.24) is a definitive price segment as long as the minimum 88.6% 0B retracement is tested.
• The 1.13 0B Extension can not be exceeded and defines the area for the stop loss limit.
• This is Harmonic Trading history – The first time I have ever released the pattern!
Shark Pattern Conclusion
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