The Shark Pattern for Harmonics

The Shark Pattern

The Shark Pattern can be used across all financial markets: Forex, Futures or Stocks.

How to trade the Shark Harmonic Patterns

See how the shark pattern should be traded; and what you might want to watch out for before trading this chart pattern.

The Three Drives pattern was first identified in the Elliot Wave Principle and later had fib numbers attached to the waves. You can tell from the pattern that the price waves have symmetrical price movements. We start with the initial move and then do retracements and extensions that fit the fib values of a 1.27 extension to a 1.618 extension.

The XABCD labels are not attached to the pattern structure itself, which makes it unique because the pattern came from the Elliot Wave Theory. This involves numbering the waves of the pattern where the harmonic three drives pattern comes from, with the 5 wave price structure identified when counting each peak and valley.

You will want to be very careful where and how to use this pattern as it does call for specific situations and events to unfold. We will go over this further in our members’ area as this pattern is alerted in our members’ area and built into our own indicators.