Crypto Academy Season 03 - Week 08 | Advanced Course - Trading Sharkfin Pattern | course by @cryptocraze

This is a new course, or just rare because I never seen it before. Although I do see the sharkfin shape but I didn't really know what it's name is or what o can call it. Thanks professor

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All images I used in this posts are screenshots from metatrader4 demo and edited with imarkup by me

1 understanding of Sharkfin Patterns.

Market makes moves and make different patterns. At times, market moves in quick and then make a reverse move again. The quick move and reverse makes a V shape which is called Sharkfin pattern.

The Sharkfin pattern can be bullish or bearish. It is effective as other patterns and a common variation on trading this pattern is to see the V shape that form sharkfin pattern.

2 RSI indicator to spot sharkfin patterns

Without indicator, chats cannot mean anything, chats need indicators before it would have meaning to traders

You explained that The length of RSI suppose to be 14 and the bands suppose to be at 30 and 70.

You also explained that for an ideal sharkfin, should in case of downtrend reversal, the RSI suppose to go below level 30 and do a quick reversal by going up the 30 level.

You said that for an ideal sharkfin in case of uptrend reversal, the RSI should go above 70 level and make a quick reversal by going down the 70 level.

3 Trade entry and Exit criteria to trade

You explained that It is necessary to note that we can only place Buy trades in spot trading available on crypto exchanges and we can also sell crypto assets on margin trading or platforms like Metatrader4.

For buy position, the criteria needed are

• use RSI indicator with default settings on your chart.

• Hold on for the price to make a clear and quick move and then started to reverse quickly to form V shape pattern.

• Make sure that RSI has gone below 30 level and then reverse back above 30 level quickly making a V shape pattern.

• Then place your Buy order when the RSI has gone above 30 level clearly.

Note: You have to wait for a clear move above 30 level cos the price can go further down before RSI goes above 30 level and then give a better sharkfin pattern.

For sell position,

• Add RSI indicator with default settings.

• Hold on for the price to make clear and quick move and then begin to reverse quickly to form V shape pattern.

• Be sure that the RSI has gone above 70 level and reverse back below 70 level quickly forming a spike looking shape V pattern.

• Make Sell order when RSI has clearly gone below 70 level.

Note: You have to wait for a clear move below 70 level because the price can still go further up before RSI goes below 70 level and then give a better V pattern

• Set Stop Loss levels and Take Profit levels for both scenarios i.e. Profit or Loss.

Exit criteria to trade

Criteria for buy

• Set stop Loss Level in case trade goes in the wrong direction after entry.

• Stop Loss level suppose be below the swing low point of the sharkfin pattern.

• When the price crosses stop loss levels, it means the trade setup is invalidated and we should exit the trade and wait for another setup.

• We Should Set Take Profit level in case our trade goes in the desired direction.

• The take profit level need to be 1:1 RR (Risk:Reward) at least which means it should be equal to our stop loss level.

• Use 1:1 RR until they get good practice with this strategy.

• When the price hits take profit levels, then book the profits and exit from trade.

Criteria for Sell

• Set Stop Loss Level in case our trade goes in the wrong direction after entry.

• Stop Loss level should be above the swing high point of the sharkfin pattern.

• When the price crosses stop loss levels, it simply means the trade setup is not validated, just exit the trade and wait for another setup.

• Set Take Profit level in case trade goes in the direction you desire.

• Your take profit level should be 1:1 RR (Risk:Reward) at least which means it should be equal to our the loss level.

• 1:1 RR is recommended until you get good practice with this strategy.

• You can book the profits or exit from trade when price hits your take profit level

4 Two trades based on sharkfin pattern strategy

This is EURUSD chat in very few minutes where I tried to make the V sharkfin pattern shape

In below USDCAD chat, I still tried to find our the sharkfin shape

Conclusion.

Not all traders make use of this Sharkfin pattern, so it's not that rampant because I didn't find it when I'm trying to make more research about it. Yes it's a useful pattern, just like other pattern and as you introduce it to us here, I personally would make use of it and make good result.

I may not really try in my assignment task, but while practising it, I will get use to it and become perfect on it like you professor @cryptocraze