Bullish Shark pattern - Found at ENVOYTEX
RULES:
B point needs to be in range of XA projection – minimum 1.13 but NOT exceed 1.618
C point needs to be in range of AB projection – minimum 1.618 but NOT exceed 2.24
C point at 0.886 0X (not 0B) retrenchment or 1.13 0X projection
We have the freedom to choose swing 0X to create the most compact zone for C point.
2 elements define PRZ:
In Figure 1, B point is at 1.13 XA Projection. The 2.0 AB projection and 0.886 0X retracement create a super compact zone for point C. The price gets rejected twice before the reversal begin. Take profit level of this pattern is at 50% BC retracement. As we will discuss about 5-0 pattern later, you will soon find out that Shark pattern is a part of a more complicated pattern which is 5-0. The green rectangle on the chart marks the PRZ of 5-0 pattern.
Figure 2 is an example where 0.886 retrenchment is quickly taken out when the price falls, which leaves us with another PRZ at 1.13 0X projection. Indeed, the price stabilizes in the PRZ formed by 2.0 AB projection and 1.13 0X projection. Price rallies shortly after stabilizing. Execution of this pattern is a bit hard and will be covered in another course. For now, just remember we need to keep our eyes open for both PRZ
Shark
Shark pattern is a combination of a ‘failed’ wave, an extreme harmonic impulse wave and the famous 0.886 retrenchment.RULES:
B point needs to be in range of XA projection – minimum 1.13 but NOT exceed 1.618
C point needs to be in range of AB projection – minimum 1.618 but NOT exceed 2.24
C point at 0.886 0X (not 0B) retrenchment or 1.13 0X projection
We have the freedom to choose swing 0X to create the most compact zone for C point.
2 elements define PRZ:
- 0.886 0X retrenchment (not OB) or 1.13 0X projection, which ever gives the most compact zone. Sometimes you would need to eye for both PRZ to see how the price reacts to each level and decide if you want to trade it.
- AB Projection
1)Bullish Shark pattern
In Figure 1, B point is at 1.13 XA Projection. The 2.0 AB projection and 0.886 0X retracement create a super compact zone for point C. The price gets rejected twice before the reversal begin. Take profit level of this pattern is at 50% BC retracement. As we will discuss about 5-0 pattern later, you will soon find out that Shark pattern is a part of a more complicated pattern which is 5-0. The green rectangle on the chart marks the PRZ of 5-0 pattern.
Figure 2 is an example where 0.886 retrenchment is quickly taken out when the price falls, which leaves us with another PRZ at 1.13 0X projection. Indeed, the price stabilizes in the PRZ formed by 2.0 AB projection and 1.13 0X projection. Price rallies shortly after stabilizing. Execution of this pattern is a bit hard and will be covered in another course. For now, just remember we need to keep our eyes open for both PRZ
hi
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