The Shark Pattern is a relatively new and advanced harmonic trading pattern, introduced by Scott Carney in 2011. It’s a powerful reversal pattern that helps traders identify high-probability turning points in the market. The pattern is based on Fibonacci ratios and price geometry and is commonly used in forex, stocks, and cryptocurrency markets.

Unlike traditional patterns like the Gartley or Butterfly, the Shark Pattern includes a distinctive 0XABY structure, offering early reversal signals and excellent reward-to-risk trading opportunities.

What is the Shark Pattern?

The Shark Pattern is a harmonic reversal pattern made up of five key points: 0, X, A, B, and Y. This pattern signals potential reversal zones (PRZ) using specific Fibonacci extensions and retracements.

The Shark Pattern can form in two types:

• Bullish Shark Pattern: Indicates a potential price reversal to the upside.
• Bearish Shark Pattern: Signals a potential price reversal to the downside.

Structure and Fibonacci Ratios of the Shark Pattern

The Shark Pattern includes four main legs: 0X, XA, AB, and BY. Each leg follows strict Fibonacci rules:

The critical aspect of the pattern is that point Y completes near a 1.618 extension of AB and an 0.886 retracement of 0X, signaling a potential price reversal zone.

How to Identify the Shark Pattern

Key Characteristics

1. Leg 0X: A strong price move that starts the pattern.
2. Leg XA: Price retraces partially, forming the second

Disclaimer: This article is for educational purposes only and should not be considered financial advice. Read our full disclaimer.