How to measure the Shark harmonic pattern?
Stage 1: Formation of B retracement leg – This leg must form and touch 0.618 retracement only from point X to point A impulsive leg, hitting the next level 0.786 would invalidate the pattern.
Stage 2: Formation of C Impulse leg – Once stage 1 is met, point C would be the next one to form and must be within 1.13 to 1.618 levels of point A to B retracement leg.
Stage 3: Formation of D retracement leg – Shark pattern must form point D within 0.886 to 1.13 point B to B retracement. This is where the pattern is considered complete and the levels to execute a trade. Stop losses placed just below point 1.272 levels and targets at 0.382 and 0.618 measuring point A to point D.
SHARK | |
XA | Any impulse leg |
B | 0.618 XA |
C | 1.13 – 1.618 AB |
D | 0.886 – 1.13 BC |
Stop loss | Few pips 1.272 XA |
Take profit | 0.382; 0.618 AD |
Long Trade example
Short Trade example
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