QUESTION 1

What is your understanding of Sharkfin Patterns? Give examples

SHARKFIN PATTERNS

This is the type of pattern that occurs when price move quickly below a previous low or above a previous high and then reverses quickly, the idea behind this is that price moves quickly above a previous high or below a previous in the form of manipulation to drive price quickly in the right direction. This pattern occurs in V shape form in a downtrend reversal and an Inverted V in an uptrend reversal

EXAMPLES OF SHARKFIN ON CHART

Looking at the Ripplecoin chart above, we will notice that price moved quickly above the previous high and the reversed quickly forming an inverted V REVERSAL SHARKFIN PATTERN

Looking at the Ripple coin below, we will notice that price moved quickly below the previous low and reversed quickly forming a V REVERSAL SHARKFIN PATTERN.

QUESTION 2

Implement RSI indicator to spot sharkfin patterns.

Application of RSI indicator to spot Sharkfins

In order to get more confluence when we have identified a Sharkfin pattern, we need to apply an indicator called RSI(Relative Strength index) with a default period of 14 and a scale of 0 -100

Our main focus is to see that the RSI is above the 70 scale aligning with an INVERTED V REVERSAL SHARKFIN PATTERN this will confirms the Sharkfin sell setup

Also when the RSI is below the 30 scale aligning with a V REVERSAL SHARKFIN PATTERN, this will confirm a Sharkfin buy setup

QUESTION 3

Write the trades entry and exit criteria to trade sharkfin pattern

TRADE ENTRY CRITERIA

Entry Criteria for Sell position

1.Add a default RSI indicator to your chart

2.Monitor price to see when it makes a sharp move above a previous high and reverse quickly

3.check for confluence using the RSI indicator, confirming that it moved quickly above the 70 level and quickly below the 70level

4.Place your sell order when price moves below the 70 level

Entry Criteria for a Buy setup

1.Add a default RSI indicator to your chart

2.Monitor price to see when it makes a sharp move below a previous low and reverse quickly

3.Check for confluence using the RSI indicator, comfirming a move quickly below the 30 band and reverses above the 30 band.

4.Place your buy order when price moves quickly above the 30 band

_{Screenshot taken from Trading view}

TRADE EXIT CRITERIA

Exit Criteria for a sell position

1 After we have sold from an INVERTED V REVERSAL sharkinfin pattern

2.Our stoploss should be above the high that formed the Sharkfin pattern, if the stoploss got hit, the sharkfin pattern is violated.

3.Our take profit should not be less than the percentage we are risking atleast 1:1 RR

4.We need to exit the trade once our Target profit level is reached

Exit Criteria for a Buy position

1.After we have bought from a V REVERSAL Sharkfin pattern

2.Our stoploss shoul be below the low that formed the Sharkfin pattern, if price goes below the level of our stoploss the Sharkfin buy setup is violated

3.Our take profit should not be less than the percentage we are risking atleast 1:1 RR

4.We need to exit once our Take profit level is reached

_{Screenshot taken from Trading view}

QUESTION 4

Place at least 2 trades based on sharkfin pattern strategy

Sell Position Based Sharkfin Pattern

Looking at the 3minutes BNB chart, after price move up quickly above the previous high and reversed showing an Inverted V sharkfin pattern confirming it with the RSI which move up quickly above the 70 band level and reversed below it, I took a sell position

Buy Position Based on Sharkfin Pattern

After spotting a V reversal Sharkfin pattern in Ravencoin chart above with an RSI confirmation I took a buy entry

CONCLUSION

To summarise, Sharkfin pattern is a powerful strategy that shows price turning point/reversal and can be used to capitalize on the market when all the requirement are in place.

Thank you so much professor @cryptokraze for such an amazing lectures this week.