Boost your trading accuracy by utilizing the Shark pattern. This pattern is claimed to have an accuracy of around 70% and offers a high-risk/reward ratio.

If you're a trader who uses chart patterns, you might know about the Shark pattern. It's one of the harmonic patterns introduced by Scott Carney in 2011.

The shark pattern is a harmonic trading formation with the structure O, X, A, B, and C to spot potential trading opportunities in the market. This pattern is relatively new compared to other patterns like Gartley, Bat, Butterfly, and Crab.

What makes the shark pattern unique is its distinctive shape, often referred to as an extreme harmonic impulse wave. It tests the levels of support and resistance within the range of 0.886 to 1.13 relative to the length of O-X. This shape sets it apart from M and W-type patterns.

How to Trade with Shark Patterns

The shark pattern comprises 5 swing points and 4 legs, marked as O, X, A, B, and C, each with specific lengths. When this pattern is valid, traders can enter the market in the C point.

Similar to other harmonic patterns, the shark pattern relies on specific Fibonacci ratios during its formation. In this case, it stands out because it involves the 88.6% retracement and the 113% extension.

Furthermore, traders believe that the shark pattern serves as a leading price indicator before significant counter-trend price movements.


How to Identify Shark Patterns?

Identifying the Shark pattern is quite simple. You just need to pay attention to how the market moves in five key swings, labeled O, X, A, B, and C.

  1. The Shark pattern starts with the O-X move, which follows the current trend direction. If the trend is going up, the o-x move goes up, creating a higher high. Conversely, if the trend is down, the o-x move goes down, forming a lower low.
    How to Trade with Shark Patterns


  1. Next, the price corrects itself and forms point A. Point A can be anywhere between O and X, but it must not go beyond O.
    How to Trade with Shark Patterns


  1. After that, the price re-enters the main trend and passes point X. The AB leg's length should be around 113% to 161.8% of the XA leg's length.
    How to Trade with Shark Patterns


  1. The price then corrects again to form point C, which typically ranges from 88.6% to 113% of the ox leg's length. The B-C leg is usually about 161.8% to 224% of the AB leg's length.
    How to Trade with Shark Patterns

When the price successfully reaches point C, you have a valid Shark pattern. Point C is your optimal entry point, often referred to as the potential reversal zone (PRZ).

You can place your stop loss either below or above the PRZ. As for your profit target, the safest point is typically around 50% to 61.8% of BC.


Mind This Rule

The formation of a Shark pattern, whether it's a bullish Shark or a bearish Shark, doesn't necessarily change the existing price trend. Therefore, you should consider the broader price context.

When a bullish Shark forms, you'll see the price breaking through point X and creating a higher high with leg AB. After the AB leg forms, the price often experiences a significant downward move.

This condition is also applicable to the bearish shark pattern.


Steps to Trade Shark Patterns

Trading the Shark pattern effectively is relatively straightforward. You can do it in 4 simple steps:

  1. Determine your position. When you're looking to buy an asset, keep an eye out for a bullish Shark pattern. As for the sell setup, you're on the lookout for a bearish Shark pattern
  2. Simply wait for the Shark pattern formation to complete before opening a position. All you need to do is wait for point C to finish up.
  3. To confirm your entry, you can use candlestick patterns like an engulfing pattern or a long pin bar. Another option is to use a combination of indicators, such as RSI, MACD, or stochastic.
  4. For your safety net, set your stop loss and take profit. The stop loss could be set just around the most recent low or high, while take profit level is aimed at the 50% or 61.8% retracement levels from the BC leg, point X, or point B.


Case Study

To help you understand trading Shark patterns better, let's take a closer look at these two scenarios.


#1 Sell EUR/USD

In the H4 EUR/USD chart below, notice how the price forms a lower low, which we'll refer to as the OX leg. It's important to note that there's no specific limit to how long this OX impulse can be.

Shark Patterns - Sell 1


Next, the price undergoes a correction, creating the XA leg. In this particular case, the correction at point A is approximately 50% of the length of the OX leg.

Shark Patterns - Sell 2


Following that, the price resumes its downward movement, forming another lower low at point B. Point B is roughly 145% away from the length of the XA leg. This indicates that the extension length still meets the required criteria, and all we need now is the formation of point C.

Shark Patterns - Sell 3


Interestingly, the price strengthens quite rapidly, reaching slightly higher than point O. To be precise, it's around 108% of the length of the OX leg. Consequently, point C becomes valid, and we decide to enter a sell position.

Shark Patterns - Sell 4


Our sell position is initiated for 1.09187, and we place a stop loss at 1.09498 (31.1 pips). For our take profit, we set it at 1.08520 (66.7 pips). This particular take-profit level corresponds to approximately 50% of the BC leg. The risk-reward ratio for this sell setup stands at around 1:2.14.

Shark Patterns - Sell 5


After entering the sell position, the price continues to decline until it reaches the take profit level at 1.08520. This setup successfully yields a profit of 66.7 pips, equivalent to roughly 2.14 times the initial risk (2.14R).

Shark Patterns - Sell 6


#2 Buy GBP/USD

In the H4 chart of GBP/USD below, you can observe the price forming a higher high. We've marked this point as O and X. 



Following the formation of point X, the price experiences a downward correction, reaching approximately 81.1% of the length of the OX leg. This correction is identified as point A. 



The price then resumes its upward movement, creating yet another higher high. We've labeled this as point B, which is roughly 126% away from the XA leg. It signifies that the bullish shark pattern only needs point C to validate.



The price once again falls, reaching about 107.6% of the length of the OX leg. Consequently, point C becomes valid since it falls within the range of 88.6% to 113% of the OX leg's length.



With point C now validated, we enter a buy position when the H4 candlestick closes. Our buy position is entered at 1.20718, and we place a stop loss at 1.19971 (74.7 pips).


For the take profit, we set it about 61.8% of the length of the BC leg at 1.21919 (120.1 pips). This setup offers a risk-reward ratio of 1:1.61.


After entering the buy position, the price continues to rise until it reaches the take profit level at 1.21919. This setup proved to be successful, resulting in a profit of 120.1 pips, which is approximately 1.61 times the initial risk (1.61R).



Shark Pattern FAQ

  • What Is The Success Rate of Shark Pattern?
    The success rate of the Shark pattern, like many technical analysis patterns in trading, can vary. The claimed accuracy of the Shark pattern is often measured to be around 70% or higher. However, it's important to note that the actual success rate can depend on several factors like market conditions, time frame, and trading instrument.

  • What Is The Best Time Frame to Trade Shark Pattern?
    The bullish Shark pattern is applicable across various time frames, but it is advisable to focus on trading this harmonic chart pattern on H1 or higher. Choose the time frame that aligns with your trading goals and strategy, and consider backtesting for validation.

  • How to Draw The Shark Pattern?
    Drawing the harmonic shark pattern manually is straightforward and can be done using basic drawing tools found on popular trading platforms such as MT4, MT5, TradingView, and others. Alternatively, you can simplify the process by utilizing a custom-built shark harmonic indicator, which automatically plots the pattern lines according to the correct Fibonacci ratios. If you happen to use MT4 or MT5, you can obtain and install such an indicator from the MQL5 website.



The Shark pattern stands out as a profitable harmonic trading pattern. It serves as a reversal indicator where you typically enter at point C.

When plotting the Shark pattern, it's crucial to ensure that the C point is positioned 88.6%-113% from the O-X leg. Always bear in mind that like any trading strategy, the Shark pattern should be employed in conjunction with robust risk management practices to mitigate potential losses.

Before you start using this pattern in your trading, we suggest doing a backtest or forward test first. This helps you get a grasp of the crucial details involved.