I really like sharks - one of my favourite harmonic patterns. It's
relatively new, having been discovered by Scott Carney in 2011.
This is what the Shark looks like.
Following that trade, you then have an interesting sequence of possibilities for further trades. Apart from being a tradeable pattern in its own right, the Shark can also lead onto 3 other subsequent patterns, which you have the possibility to trade one after the other. Firstly, The Shark leads onto the 5-0 pattern. Here is the 5-0 pattern. You can see how the Shark relates to it. (Note that not all 5-0 patterns are preceded by a Shark though).
The first target of the Shark is the D of a 5-0 pattern. And now with the 5-0 you have the possibility to enter a trade from the D in the opposite direction of your previous Shark trade. Next, notice that the BCD of a 5-0 pattern often turns out to be the XAB of an emerging Bat or a Crab pattern (with B at 50% XA, it could turn out to be either a Bat or Crab). So now we watch for the emerging Bat or Crab and if a C point is made - if so, then we have the possibility to enter a BAMM trade (trade from price at the B level to target the D of the emerging pattern). But we only enter the BAMM trade if it is in the direction of the prevailing overall trend. Do not trade a BAMM in the counter-trend direction. Finally - whether or not the BAMM trade was taken, we now have the possibility to enter a new trade with the Bat or Crab pattern - if it has formed. That's 4 possible trades all starting with the Shark. As i said - it's one of my favourite patterns. Good Trading! |
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(2013-05-21 16:54:40)
