Recently, someone asked me how to learn harmonic patterns. I remembered that the Shark pattern and the 5-0 pattern are indeed easy to confuse. Today, I’ll organize my understanding.

First, let's talk about the Shark pattern. It was discovered by Scott Carney in 2011. I personally find its characteristics quite simple to remember. The Shark pattern is somewhat similar to the Bat, but the C point exceeds the A point, which is called a "breakout of the previous low," indicating a strong counter-trend move.

How are the points of the Shark pattern determined? The X point is the high or low of the market, and the A point is where the X pattern ends. The B point is relatively flexible; it’s recommended to place it within the 0.382 to 0.618 retracement of XA. The C point must surpass A, falling between 1.13 and 1.618 of the AB extension, excluding 1.618. An important note: the D point is not as complex as in the Butterfly or Crab patterns. It is determined by the XC leg, falling between 1.13 and 1.618 of XC, with BC between 1.618 and 2.24.

How to set take profit and stop loss? T1 can be placed at 0.5 of the CD leg, T2 at 0.886 of CD. Stop loss is placed at the X point or at 1.41 of XA.

In my experience, I’ve seen many real trades. For example, the 4-hour chart of AUD/USD showed a very standard bullish Shark pattern, like a big M shape. When bearish, it looks like a W. Honestly, the Shark pattern is quite practical in actual trading, as long as you remember the key points, it’s not too difficult to identify.

Next, let’s discuss the 5-0 pattern. This pattern is a bit special; it’s the only harmonic pattern confirmed with six points. The part before D is very similar to the Shark pattern and was also discovered by Scott Carney. The 5-0 pattern represents the first correction of an important trend, with four segments, each corresponding to specific Fibonacci ratios.

How to determine the points of the 5-0 pattern? The A point is located between 0X, generally between 0.382 and 0.618. The B point is an extension of 1.13 to 1.618 of the XA leg. The C point must break above the high of A and 0, falling within the 1.618 to 2.24 extension of AB. The D point is determined by the BC leg, at the 0.5 or 0.618 retracement of BC, with AB equal to CD. The reversal zone is identified by the D point combined with the 0.382 to 0.618 retracement of BC.

For take profit, T1 can be set at 0.382 or 0.618 of CD, T2 at 1 of CD. Stop loss is placed at the 0.618 of BC or the next Fibonacci level at 0.786 of BC in the reversal zone.

From real charts, the daily chart of GBP/JPY has shown a classic bullish 5-0 pattern. After a rally, a pullback occurs to B, then a rally to C forms a W shape, followed by a decline to the 0.5 retracement of BC, which becomes the entry point.

Honestly, although the Shark and 5-0 patterns look complicated, as long as you memorize the Fibonacci ratios and review several real trading cases, you can get a good grasp. The key is to practice more in actual trading, not just rely on theory. If you're interested, try analyzing some historical charts yourself to see if you can accurately identify these patterns.