Recently studying harmonic patterns, I found some interesting things, especially those tools used to predict trend reversals. Today I want to share two patterns I find easy to grasp— the Shark pattern and the 5-0 pattern.

Speaking of the Shark pattern, it was discovered by Scott Carney in 2011. I noticed a special feature: the C point exceeds the A point, and this "breakout of the previous low" phenomenon actually indicates a strong counter-trend move. The logic for identifying the Shark pattern is as follows—X is the high or low of the market, A is the end point of this move, and the B point has a looser requirement, generally retracing between 38.2% and 61.8% of XA.

Interestingly, the D point of the Shark pattern isn’t as complex as the Bat or Butterfly patterns; it is determined by XC, falling between 1.13 and 1.618 of XC, and must also satisfy the BC extension of 1.618 to 2.24. From real trading charts, the 4-hour chart of AUD/USD shows a very standard bullish Shark pattern, forming a large M shape. The bearish Shark pattern is W-shaped, which can also be seen on the AUD daily chart.

Pay attention to take-profit and stop-loss levels—T1 is at 0.5 of CD, T2 at 0.886 of CD, and stop-loss is set at point X or at 1.41 of XA.

Now, about the 5-0 pattern, it’s the only harmonic pattern confirmed with six points, also discovered by Scott Carney. It indicates the first retracement of an important trend, consisting of four segments. The interesting part is that in the 5-0 pattern, point X is the second point, and point 0 is the first, using Arabic numerals.

The method to determine each point of the 5-0 pattern—Point A is generally between 38.2% and 61.8% of the 0X segment, Point B is at the 1.13 to 1.618 Fibonacci extension of XA, 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, at the 0.5 or 0.618 retracement of BC, and AB should equal CD. The reversal zone depends on point D combined with the 0.382 to 0.618 retracement of BC.

For take-profit levels, T1 is set at 0.382 or 0.618 of CD, T2 at 1 of CD. Stop-loss is placed at the 0.618 or 0.786 retracement of BC, just below the Fibonacci extension line.

From real trading cases, the daily chart of GBP/JPY shows a clear bullish 5-0 pattern: after rising, the price retraces and falls back to B, then pulls up to C forming a large W, and finally drops to the 0.5 retracement of BC, entering at D point to catch the subsequent move.

Honestly, I find these two tools—the Shark and 5-0 patterns—quite user-friendly, especially because they clearly mark reversal points. If you’re also using harmonic patterns for trading analysis, these two patterns are worth studying in depth. Recently, I’ve been monitoring some related assets on Gate, so if you're interested, check them out and combine these patterns to find opportunities.