Allow us to teach you everything about the bullish shark pattern, including how to use it to generate and improve profit.
Learn about it now by reading what’s below.
What is a Shark Pattern?
This pattern belongs to the Harmonic Pattern family, discovered by Scott Carney. It is a chart formation with extremely impulsive waves.
This Harmonic pattern requires a specific set of Fibonacci connections within its structure.
Furthermore, it has its own five-point labels, which slightly differ from the traditional harmonic labels. These are 0, X, A, B, and C instead of X, A, B, C, and D.
What is a Bullish Shark Pattern?
In the stock market, the word bullish characterizes rising prices. So, when you see a bullish shark pattern in your candlestick chart, it is an indication of rising market prices nearing.
There are many ways to trade a bullish shark harmonic pattern, but the most common way follows the traditional rule of thumb.
Which is to sell in sight of a bullish pattern and to buy in view of a bearish one. This is to avoid the nearing impacts of market price changes and benefit from them instead.
How To Identify a Bullish Shark Pattern?
The bullish harmonic shark pattern is usually characterized by two things.
The first would be that it appears to be shaped like the letter M due to its impulsive waves. And the second is that its second upward strike is higher than the first.
But there are also bullish shark pattern rules, which are a set of ranges your pattern should follow to confirm its accuracy.
It follows the 88.6% and the 113% reciprocal ratios. This means that point 0 and point C must fall within these numbers.
Example of a Bullish Shark Pattern
A deep shark pattern on your candlestick chart often follows a set of features.
The best example of a bullish shark pattern target is when it follows a well-retesting prior point as a counter-reaction, falling into the 0.886 to 1.13 range.
Another example would be the M-shaped formation, but this makes it easy for a shark pattern to be confused with something else.
