The Shark Harmonic Pattern is an advanced trading pattern used in technical analysis to identify potential reversal points in the market. It is part of the family of harmonic patterns, which are based on Fibonacci ratios and geometric price structures. The Shark Pattern was discovered by Scott Carney and is characterized by its unique structure and aggressive price movements.

The pattern consists of five key points (O, X, A, B, C) and two legs: the initial leg (OX) and the corrective leg (XABC). The defining feature of the Shark Pattern is the extended move beyond point X, often reaching extreme Fibonacci levels (e.g., 1.13, 1.618, or even 2.24). This extension creates a sharp, "V" "-like shape, resembling a shark’s fin, hence the name.

Traders use the Shark Pattern to anticipate potential reversals, especially in volatile markets. The completion point (C) often serves as a high-probability entry point for counter-trend trades, with stop-loss orders placed just beyond the extreme. The pattern is particularly useful in trading in forex, stocks, and commodities.

While the Shark Pattern can be highly profitable, it requires precise identification and confirmation through additional tools like momentum oscillators or candlestick patterns. Due to its complexity, it is recommended for experienced traders who understand harmonic principles and risk management.