Trade Setup
Once the X and A points have been identified the market forms the B by fulfilling at least a 38.2% retracement of the XA leg and does not exceed the 78.6% XA.
The C point is valid if it touches at least a 113% extension of the XA leg and does not exceed the 161.8% extension of XA.
The Potential Reversal Zone (PRZ) for a Shark is actually just one point, rather than the other Harmonic Pattern’s 3 points. Therefore the D point of a Shark is calculated as the 113% extension of the X-C.
Harmonic Alternative Shark Target 1: 38.2% retracement of the CD leg.
Harmonic Alternative Shark Target 2: 50.0% retracement of the CD leg.
Harmonic Alternative Shark Stops: 141.4% extension of the XC.
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