“The Shark Pattern is a new harmonic pattern that I initially released in 2011 in my Patterns into Profits course. Although I was aware of the price structure for quite some time, I needed to refine the identification parameters to discover the best opportunities. Essentially, the pattern is the primary structure that precedes a 5-0 formation. This structure is outside the typical M and W framework. It possesses a unique formation called an Extreme Harmonic Impulse Wave that retests defined support/resistance while converging in the area of the 0.886 retracement – 1.13 extension. In all cases, the completion point must include the powerful 88.6% support/retracement as a minimum requirement. In addition, the unique extreme Harmonic Impulse Wave employs a minimum 1.618 extension. This combination with the 88.6% retracement defines a unique structure that possesses two profound harmonic measures to define the minimum level. In many cases, the price action will retest the initial starting point of the pattern and define excellent opportunities to take advantage of a market that has moved to far too fast within a limited period of time. These structures typically possess over-extended price action that utilizes the “natural” state of the Extreme Harmonic Impulse Wave which is typically categorized with reactionary trading behavior. This pattern frequently defines excellent opportunities but these reversals are often sharp and require specific management strategies to capitalize on the phenomenon. In many situations, the price action will retest the prior support/resistance level and typically result in a limited counter trend move. This structure should be handled differently than the standard M and W patterns. In fact, the overall expectations in price action should be short-lived and seek to capture the clearest opportunities. The Shark pattern yields many accurate and aggressive reactions that can be successfully traded as long as a more active management is applied.”
Harmonic Trading: Volume Three Page 195
(Copyright Scott M. Carney 2016 HarmonicTrader Press)
The Shark Pattern™ is dependent upon the powerful 88.6% retracement and the 113% Reciprocal Ratio, works extremely well retesting prior support/resistance points (0.886/1.13) as a strong counter-trend reaction. Represents a temporary extreme structure that seeks to capitalize on the extended nature of the Extreme Harmonic Impulse Wave.
Demands immediate change in price action character immediately following pattern completion. Extreme Harmonic Impulse Wave utilized depends upon location of 88.6% level – these are minimum requirements. Requires an active management strategy to capture high probability profit segments.
Shark Pattern™ Basics
• Different from the M-type and W-type alignments in
the other patterns but the same Harmonic Trading®
• Comprised of two independent price segments –
• Failed Harmonic Impulse Wave
• Extreme Harmonic Impulse Wave
• Possesses defined profit target.
• Requires active management.
• Possesses precise ratios to define the
• As effective as other harmonic patterns.
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SHARK PATTERN TM Documentation: 86842233
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