Recently reviewing harmonic patterns, I found the Shark pattern to be quite interesting. It and the 5-0 pattern are two of the more unique harmonic patterns because they both can exceed their left side on the right, making them stand out among all patterns and easier to remember.

Let's talk about the Shark pattern first. It was discovered by Scott Carney in 2011. It resembles the Bat pattern, but the key difference is that point C surpasses point A, resulting in a "breakout of the previous low" phenomenon. This usually indicates a strong counter-trend move. When bullish, it forms a large M shape; when bearish, a W shape—pretty straightforward.

The confirmation method for the Shark pattern differs from that of the Butterfly and Crab. X is the high or low of the price move, A is the end point of the X move, and B is more flexible—it's recommended to be within the 0.382 to 0.618 retracement of XA. Point C must exceed A, falling between 1.13 and 1.618 retracement levels of AB. Pay attention to point D, which, unlike other patterns determined by XA, is defined by XC and should be between 1.13 and 1.618. Additionally, BC must satisfy the 1.618 to 2.24 extension condition.

Take profit levels are set at 0.5CD and 0.886CD, while stop-loss is placed at point X or at 1.41 of XA. I looked at the 4-hour chart of AUD/USD; after a decline, the price started rising, forming a classic bullish Shark pattern with a large M shape. Similarly, for bearish setups, the daily chart of AUD/USD showed a large W forming a bearish Shark pattern.

Next, about the 5-0 pattern, which is the only harmonic pattern confirmed with six points, also discovered by Scott Carney. It indicates the first retracement of an important trend. It has four segments, each corresponding to specific Fibonacci levels. Interestingly, point 0 is the first point, and point X is actually the second, which is different from other patterns' logic.

Point A is usually between 0.382 and 0.618 of the 0X segment, and point B is a Fibonacci extension of 1.13 to 1.618 of the XA segment. 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 retracement levels, and AB must equal CD. The reversal zone is drawn based on point D combined with the 0.382 to 0.618 retracement of BC.

Profit targets are set at 0.382CD or 0.618CD, then at 1CD, with stop-loss placed at the 0.618BC or 0.786BC retracement levels below the reversal zone. I saw the daily chart of GBP/JPY; after a rally, a correction, then a decline to point B, followed by a rally to point C forming a large W, then a drop to the 0.5 retracement of BC, forming a clear bullish 5-0 pattern. Entering at D could capture the subsequent move.

In fact, the front parts of the Shark and 5-0 patterns are quite similar, but since 5-0 has an extra point, it requires more careful judgment. Once you grasp these features, you can identify trend reversals earlier in live trading. Although these patterns seem complex, observing more examples helps recognize the regularities.