The Shark pattern is a harmonic pattern used to predict potential reversal points in the markets. It’s a relatively new pattern, discovered by Scott Carney in 2011. Trading the Shark pattern requires a more active approach to have the best chances of success.

As with all harmonic patterns, the Shark requires that specific Fibonacci ratios must be met to be considered valid to trade. However, the Shark is unique in that it uses the 0.886% and 1.131% ratios to identify potential reversal points.

As mentioned, the pattern features five key swing points (O, X, A, B, and C) connected by four legs (OX, XA, AB, BC). Specifically, OX is an impulsive leg, and XA is a retracement. AB then moves beyond X with another impulse, sometimes appearing as a double top or bottom, before BC retraces near O to create the entry point, C.