Understanding Trading Sharkfin Pattern
Hello everyone, hope you all are doing good? This is the beginning of an exciting three part series, which promises to be informative and also educative, do well to follow all the parts, as you will definitely gain 1 or 2 useful information from the series. In today's article we would be look at what is Sharkfin Patterns and looking at how to implement RSI indicator to spot sharkfin patterns.
The sharkfin pattern occurs when there's a strong trend movement of price towards a direction, be it upward or downward price movement, and then a sudden reversal in the trend movement. For instance, a strong upward price movement and boom!! a sudden strong downward price movement.
The sharkfin pattern forms a V shape, because of it's trend reversal and that's the reason for it's name. A shark fin is V shaped and this trend pattern is V shaped.
To fully comprehend, what I'm saying, let me show you an illustration below of an uptrend reversal Sharkfin pattern.
Below is an illustration of a downtrend reversal Sharkfin pattern
How To Implement The RSI indicator To Spot Sharkfin Patterns.
RSI indicator is known to detect trend reversal and implementing it to spot sharkfin patterns, is a trend confirmation strategy.
Let me show you how you can make use of the RSI indicator to detect/spot an uptrend reversal sharkfin pattern.
Let me also show you how you can make use of the RSI indicator to spot a downtrend reversal sharkfin pattern.
I hope you all found the article interesting and exciting. Do well to share your thoughts about the article in the comment section below. Thanks.
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