Euro / U.S. DollarShort
EURUSD 15 Min TF Potential Shark
How to Trade the Shark Harmonic Pattern
The Shark trading strategy like any other harmonic pattern is a five-leg reversal pattern that follows specific Fibonacci ratios.
The harmonic Shark pattern differentiates itself from the other harmonic patterns by its five points setup being labeled as O, X, A, B, C. Also the termination point of leg B ends above wave X and extend to the minimum of 1.13 and maximum of 1.618 Fibonacci ratios.
A proper Shark pattern needs to fulfill the following three Fibonacci rules:
AB= retrace between 1.13 – 1.618 Fibonacci Extension of XA leg;
BC= extends to 113% Fibonacci extension of 0X leg;
CD= Poses a target of 50% Fibonacci Retracement of BC leg
Note* the Fibonacci retracement and ratios are at the core of harmonic trading. Make sure the above rules are satisfied before you trade the Shark harmonic pattern.
The Shark trading strategy like any other harmonic pattern is a five-leg reversal pattern that follows specific Fibonacci ratios.
The harmonic Shark pattern differentiates itself from the other harmonic patterns by its five points setup being labeled as O, X, A, B, C. Also the termination point of leg B ends above wave X and extend to the minimum of 1.13 and maximum of 1.618 Fibonacci ratios.
A proper Shark pattern needs to fulfill the following three Fibonacci rules:
AB= retrace between 1.13 – 1.618 Fibonacci Extension of XA leg;
BC= extends to 113% Fibonacci extension of 0X leg;
CD= Poses a target of 50% Fibonacci Retracement of BC leg
Note* the Fibonacci retracement and ratios are at the core of harmonic trading. Make sure the above rules are satisfied before you trade the Shark harmonic pattern.
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