In 2011, Scott Carney discovered the shark candlestick pattern, a new harmonic chart pattern. Interestingly, the shark candlestick pattern indicates a possibility of trend reversal.
It is possible to use the shark candlestick pattern to identify trend changes. Also, traders can use the shark candlestick pattern to find successful trading opportunities.
Let’s take a look at the harmonic shark pattern to learn more about it.
Important details about the shark pattern
As stated above, the shark pattern was discovered by Scott Carney. We need to mention that the pattern mentioned above is a five-legged reversal pattern that is highly dependent on the powerful 88.6% retracement level as well as the 113% reciprocal.
Also, the pattern mentioned above has a chart formation called the Extreme Harmonic Impulse Wave. Interestingly, an extreme harmonic impulse wave resembles the letter M 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 must meet a series of Fibonacci ratios to be valid. Importantly, it also aims to predict future price movements using past price swings. You are also using geometric shapes.
Interestingly, Carney used a different method for the famous points of the five-wave harmonic pattern.
Aside from the different pivot point labels, as well as the unique Fibonacci ratio that Carney invented for the aforementioned pattern, it is similar in structure to the Encryption Pattern, Crab Pattern, and Bat Pattern.
Do you know what is the difference between the cipher pattern and the shark pattern?
As a reminder, the shark pattern and the cipher pattern are almost identical in structure and appearance. However, the most notable differences between the shark pattern and the hash pattern are the Fibonacci ratios between points X and B compared to A and C in the hash pattern (127%-141%) and the O ratio at 88%-113 C. % for the Shark pattern compared to 78.6% for the Cipher pattern.
Pros and cons
The pattern mentioned above has its advantages and disadvantages. We can start with the advantages.
It is a high precision chart pattern. In addition, it offers an excellent risk-reward ratio.
Now, let’s take a look at the disadvantages.
Unfortunately, the pattern mentioned above is not the best option for inexperienced traders due to its complex nature. Also, it requires an external plugin. However, the external plugin mentioned above is not available on all trading platforms.
Helpful tips
Is it difficult to draw the pattern mentioned above?
It is possible to draw the pattern mentioned above manually. However, it is not an easy task to draw the pattern mentioned above. Therefore, it is better to use a custom built-in indicator that automatically draws the lines with the relevant Fibonacci ratios.
If you are using MetaTrader 4 or MetaTrader 5, you can purchase the indicator and install the indicator mentioned above on your MT platform.
Meta Trader 4
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 merchants.
MetaQuotes Software is the owner of the aforementioned platform. What is interesting, MT4 also provides users with various market indicators. Therefore, users have the possibility to take advantage of the market indicators provided by MT4.
Users have the opportunity to download MetaTrader for free. They can also use it for free.
MetaTrader has a rich history. As a reminder, it was introduced over 15 years ago.
As the name of MetaTrader suggests, MetaTrader has several versions. Interestingly, MetaTrader 4 is the most popular version.
MetaTrader 5 has been around for a long time. It was introduced in 2010. However, the vast majority of users continue to use MT4. The trading platform offers various features. However, it is important to mention that MT4 does not have a direct customer support service.
Rates and services
It is possible to download a demo account of MetaTrader for free. For example, you can use the demo account to learn more about the platform.
However, launching a live account is a bit different. Do you know how the trading platform mentioned above makes money?
Sells software licenses to intermediaries. Users can partner with the brokers mentioned above to open live accounts. So, to open a real account, you will need to select a broker and submit an application.
Once a broker approves your application, the broker will send you a user ID and password. Remember, the brokerage firms determine the fees. In particular, they will determine the
types of fees you will pay to use the platform, etc.
As a reminder, the price of each license is quite high.
In addition, brokerage firms have to pay money monthly for other services. As a reminder, not all brokerages offer the same features. Therefore, it is important to verify the information about each brokerage.
MetaTrader 4 is used by traders all over the world, not only experienced traders but also newbies.
Additionally, traders have the opportunity to use various educational resources as well as tutorials to help them better understand one of the most popular trading platforms in the world.
Important Details About MetaTrader 4
One of the best features of the platform mentioned above is ? Let’s find out!
Interestingly, users have the ability to automate their trading by programming custom indicators in the platform’s proprietary coding language.
The important thing is that the platform can run in more than 30 different languages. Also, traders have the opportunity to copy the activity of other successful traders.
In addition to the forex market, MT4 can also be used for trading within other markets.
You will not find in-person financial advisors or robo-advisor services on MT4. Don’t worry; some brokers offer additional features.
MetaTrader 4 offers desktop and application versions. So you can use a desktop version on any
computer running Windows, Mac OS, or Linux. What about the mobile version?
You can use MetaTrader 4 on Android or Apple mobile devices. In 2022, the app was removed from Apple’s App Store. It is unknown what forced Apple to remove the MetaTrader 4 application.
Hopefully, it’s pretty easy to use both the app and the desktop versions of the platform mentioned above. However, it is desirable to learn as much as possible about the platform. Also, you should read articles and books on the forex market to understand all the risk factors.
MetaTrader 4 and its rivals
MetaTrader 4 is one of the most popular trading platforms in the world. However, MetaTrader 4 is not perfect. It also has its drawbacks. For example, it is not as fast as other platforms.
Therefore, MetaTrader 4 is not a perfect platform for traders interested in high frequency trading. As stated above, there are other platforms that are more suitable for these 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 the features.
Although MT4 is free, you should make sure that you partner with a broker that charges minimal fees.
As you can see, MT4 is not a perfect platform. However, the advantages outweigh the disadvantages. For example, MT4 provides the vast majority of industry standard features.
Also, you can find unique things on MT4. The platform mentioned above offers unique things.
However, it is not an easy task to compare the above mentioned platform with other trading platforms when it comes to price.
It is possible to download MT4 for free. However, in order to take advantage of all the features, it is necessary to open an account with a brokerage firm. What is important, the brokerage mentioned above must have a license. Therefore, the fees may differ enough depending on the company you select to work with.
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