In this article, we want to give you a “heads up” on the Gold.
The pair has formed a BULLISH SHARK pattern on a daily chart.
The Harmonic Shark pattern is a relatively new trading pattern that was discovered in 2011 by Scott Carney. The shark pattern is somewhat similar to the crab pattern identified by the overextended swing/pivot point C.
Rules for the Shark pattern
Before you try and trade the pattern, make sure that the following rules are met:
The Shark pattern has the following ratios.
CD leg extends XA leg between 113% – 161.8%
BC leg extends beyond X by 113% of the OX leg
CD leg is also an extension of AB by 161.8% – 224%
Unlike other harmonic patterns, the trades are entered as follows:
Entry is at 88.6% of XAÂ leg with stops coming in at point D
Targets can be 61.8% of CD
How to trade this pattern? Since the pair has reached almost 2.24% Fibonacci extension of the AB leg this is the zone for the market entry as it is shown on the chart. The stop loss should be below the point D 72.500 level. The take profit target should be at least 50% Fibonacci retracement of the 1372-1156 C-D range.
By using our top-down trading technical analysis we have identified the key levels which will be triggers for the entry and exit, based on the present market conditions of the instrument. This analysis has been brought to you by Motive Wave platform.
Happy trading! (click on the chart to enlarge it)
Through time we have developed a very respectable trading strategy which defines Entry, Stop Loss and Take Profit levels with high accuracy and allows you to make position risk free. We are publishing daily and weekly analysis and 5-10 trade alerts per week directly on your mobile device via Private twitter feed and Private Telegram group! NOW! NEW! With some of our premium membership plans, you will have MT4 harmonic pattern recognition software and access to Premium formationseeker.com membership! Two Premium trading services for one price! Also, you will Tradingview Spectro screener and Spectro Indicator! Live trading consultations included with our Annual Premium membership plan.
