Recently organized some notes on harmonic patterns and wanted to share two particularly interesting formations— the Shark pattern and the 5-0 pattern. These two patterns are somewhat special among all harmonic patterns because their right side may extend beyond the left side, making them easier to recognize and remember.

First, let's talk about the Shark pattern. It was discovered by Scott Carney in 2011. I personally find it most interesting because the C point can surpass the A point, creating a "breakout below previous low" phenomenon. This usually indicates a strong counter-trend move. The logic behind the Shark pattern is as follows: X is a high or low point in the market, A is the end of the X move, and B has relatively flexible requirements, generally retracing between 0.382 and 0.618 of XA. The C point is more critical; it must exceed the A point and fall within the 1.13 to 1.618 Fibonacci retracement levels of AB. The D point is determined by XC, falling between 1.13 and 1.618, and must also satisfy the BC extension of 1.618 to 2.24.

For take profit, T1 is set at 0.5 of CD, and T2 at 0.886 of CD. Stop loss can be placed at the X point or at 1.41 of XA. I’ve seen many clear examples of Shark patterns on 4-hour charts of AUD/USD and BTC price movements. Bullish Sharks typically form a large M shape, while bearish ones form a W shape—this characteristic is very obvious.

Next is the 5-0 pattern. This pattern is quite unique; it’s the only harmonic pattern with six confirmed points. Its first half is somewhat similar to the Shark pattern and was also discovered by Scott Carney. The 5-0 pattern indicates the first correction of an important trend, consisting of four segments, with each point corresponding to specific Fibonacci levels. Notably, in the 5-0 pattern, the X point is the second point, and the 0 point is the first.

In the 5-0 pattern, point A generally falls between 0.382 and 0.618 of the 0X segment, point B is a Fibonacci extension of 1.13 to 1.618 of the XA segment, and point C must break above the highs of A and 0, falling within the 1.618 to 2.24 extension of AB. Point D is determined by the BC segment, falling at the 0.5 or 0.618 Fibonacci retracement level, with the condition that AB equals CD. The reversal zone depends on point D combined with the 0.382 to 0.618 retracement of BC. Take profit can be set at 0.382CD or 0.618CD, and T2 at 1CD. Stop loss is placed at the next Fibonacci level below the 0.618BC or 0.786BC reversal zone.

I’ve seen cases on GBP/JPY daily charts, as well as on indices like Huatai Securities and US100 CFD, where the 5-0 pattern frequently appears. Interestingly, the appearance of a Shark pattern may sometimes be followed by a 5-0 pattern, but not necessarily the other way around.

Although these two patterns may seem complex, once you understand the Fibonacci logic behind them, you can quickly identify them in live trading. Especially the Shark pattern, because of its clear visual features, can be found across various timeframes and instruments. If you’re studying harmonic patterns, these two are definitely worth deepening your understanding of.