Shark Pattern, What Does It Mean?
In 2011, Scott Carney discovered the shark candlestick pattern, a new harmonic chart pattern. Interestingly, the shark candlestick pattern indicates a trend reversal possibility.
It is possible to use the shark candlestick pattern in order to identify trend reversals. Moreover, traders can use the shark candlestick pattern in order to find successful trading opportunities.
Let’s take a look at the harmonic shark pattern in order to learn more about it.
Important details about shark pattern
As stated above, the shark pattern was discovered by Scott Carney. We need to mention that the pattern mentioned earlier is a five-leg reversal pattern largely dependent upon the powerful 88.6% retracement level as well as the 113% reciprocal ratio.
Furthermore, the above-mentioned pattern has a chart formation called an Extreme Harmonic Impulse Wave. Interestingly, an Extreme Harmonic Impulse Wave resembles the M letter for a bullish shark pattern and W for a bearish shark pattern.
As in the case of other harmonic chart patterns, the shark candlestick formation has to meet a number of Fibonacci ratios in order to be valid. Importantly, it also aims to predict future price movements utilizing previous price swings. It is also using geometric shapes.
What’s interesting, Carney used a different method for the famous five-swing harmonic pattern points.
Aside from the different swing point labeling as well as the unique Fibonacci ratio Carney invented for the pattern mentioned earlier, it is similar in structure to the cipher pattern, the crab pattern, and the bat pattern.
Do you know what the difference is between the cipher pattern and the shark pattern?
As a reminder, the shark pattern and cipher pattern are almost identical when it comes to structure and appearance. Nevertheless, the most noticeable differences between the shark pattern and the cipher pattern are the Fibonacci ratios between X to B points compared to A to C in the cipher pattern (127%-141%) and the O to C ratio of 88%-113% of the Shark pattern compared to 78.6% in the cipher pattern.
Pros and cons
The pattern mentioned earlier has its advantages and disadvantages. We can start with advantages.
It is a highly accurate chart pattern. Furthermore, it offers an excellent risk-reward ratio.
Now, let’s take a look at the disadvantages.
Unfortunately, the pattern mentioned above isn’t the best option for inexperienced traders due to its complex nature. Moreover, it requires an external plugin. However, the above-mentioned external plugin isn’t available on all trading platforms.
Is it hard to draw the above-mentioned pattern?
It is possible to draw the above-mentioned pattern manually. However, it isn’t an easy task to draw the pattern mentioned earlier. So, it is better to utilize a custom built-in indicator that automatically draws the lines with the relevant Fibonacci ratios.
If you are using the MetaTrader 4 or MetaTrader 5, you can purchase the indicator and install the indicator mentioned above on your MT platform.
What do you think about MetaTrader 4?
MetaTrader 4, also known as MT4, is a world-famous trading platform. Interestingly, it is a platform that specializes in allowing users to create and automate complex traders.
MetaQuotes Software owns the above-mentioned platform. What’s interesting, MT4 also provides users with various market indicators. So, users have the ability to take advantage of the market indicators provided by MT4.
Users have the opportunity to download MetaTrader free of charge. They can also use it free of charge.
MetaTrader has a rich history. As a reminder, it was introduced more than 15 years.
As MetaTrader’s name suggests, MetaTrader has various versions. Interestingly, MetaTrader 4 is the most popular version.
MetaTrader 5 has existed for a long time. It was introduced in 2010. Nevertheless, the vast majority of users continue to use MT4. The trading platform offers various features. However, it is important to mention that MT4 has no direct customer service.
Fees and services
It is possible to download a MetaTrader demo account fr of charge. For example, you can use the demo account in order to learn more about the platform.
Nevertheless, launching a live account is a bit different. Do you know how the above-mentioned trading platform makes money?
It sells software licenses to brokers. Users can partner with the brokers mentioned earlier in order to open live accounts. So, in order to open a live account, you will need to select a brokerage and submit an application.
Once a brokerage approves your application, the brokerage will send you a user ID as well as a password. Remember, brokerages determine fees. Notably, they will determine the
types of fees you will pay in order to use the platform, etc.
As a reminder, the price of each license is quite substantial.
Moreover, brokerages have to pay money for other services on a monthly basis. As a reminder, not all brokerages offer the same features. So, it is important to check the information about each brokerage.
Traders from all over the world use MetaTrader 4, not only experienced but novice traders as well.
Furthermore, traders have the opportunity to use various educational resources as well as tutorials in order to help them better understand the world’s one of most popular trading platforms.
Important details about MetaTrader 4
One of the best features of the above-mentioned platform is? Let’s find out!
Interestingly, users have the ability to automate their trades by programming custom indicators in the platform’s proprietary coding language.
What’s important is that the platform can run in more than 30 different languages. Moreover, traders have the opportunity to copy the activity of other successful traders.
Apart from the forex market, MT4 can also be utilized for trades within other markets.
You won’t find in-person financial advisors as well as robo-advisor services on MT4. Don’t worry; some brokerages offer additional features.
MetaTrader 4 offers both app and desktop versions. So, you can use a desktop version on any
computer that runs on Windows, Mac OS, or Linux. What about the mobile version?
You can use the MetaTrader 4 on Android or Apple mobile devices. In 2022, the app was removed from Apple’s App Store. What forced Apple to remove the MetaTrader 4 app remains unknown.
Hopefully, it is quite easy to use both the app and desktop versions of the above-mentioned platform. Nevertheless, it is desirable to learn as much as possible about the platform. Moreover, you need to read articles and books about the forex market in order to understand all risk factors.
MetaTrader 4 and its rivals
MetaTrader 4 is one of the most popular trading platforms in the world. However, MetaTrader 4 isn’t perfect. It also has its disadvantages. For example, it isn’t as fast as other platforms.
So, MetaTrader 4 isn’t a perfect platform for traders who are interested in high-frequency trading. As stated above, there are other platforms that are more suitable for such traders.
It is important to note that its interface is quite good. However, it can also be quite confusing to understand how to take advantage of all features.
Even though MT4 is free, you should make sure to partner with a brokerage that charges minimal fees.
As you can see, MT4 isn’t a perfect platform. However, the advantages outweigh the disadvantages. For example, MT4 provides the vast majority of the industry’s standard features.
Moreover, you can find unique things on MT4. The above-mentioned platform offers unique things.
Nevertheless, it isn’t an easy task to compare the platform mentioned above to other trading platforms when it comes to price.
It is possible to download MT4 for free. However, in order to take advantage of all features, it is necessary to open an account with a brokerage. What’s important, the brokerage mentioned earlier should have a license. So, fees may differ sufficiently based on which firm you select to work with.