Shark and 5-0 Patterns: Advanced Entries Beyond Carney

The Shark and 5-0 break the XABCD rules you learned for Gartley and Bat. They re-anchor on the O point and the 5-0's defining 1.13 ratio, and treating them like classic harmonics is the fastest way to lose money on them.

The Shark and 5-0 were formalised after Scott Carney's original set. Both abandon the X point as the completion reference. The Shark anchors on OX (a prior extreme beyond X), and the 5-0 anchors on AB=CD equality at its defining 1.13 retracement. The geometry is different, and so is the trade.

Shark structure

The Shark uses five points O-X-A-B-C:

• OX: the prior leg leading into X
• XA: impulse
• AB: retraces 0.618–1.130 of XA (AB can exceed X)
• BC: extends 1.618–2.240 of XA
• C completes at 0.886–1.130 of OX (the defining zone)

C is the reversal point. The defining character: C is beyond X in the direction of the original OX move, making the Shark a deep extension reversal like the Crab, but anchored on OX.

5-0 structure

The 5-0 uses X-A-B-C-D:

• XA: impulse
• AB: extends 1.13–1.618 of XA (beyond X, not a retracement)
• BC: retraces 1.618–2.240 of AB
• CD: retraces 0.50 of BC exactly (tolerance ±0.01)

The 5-0's defining rule is the 0.50 retracement of BC at D, combined with AB = 1.13 of XA. The 1.13 ratio is the 5-0's signature — no other harmonic uses it.

Why these patterns need different entries

The classic harmonics complete at a retracement of XA, where the stop sits naturally beyond X. The Shark and 5-0 complete at extensions or unrelated retracements, so "stop beyond X" is geometrically wrong.

Shark stop: 0.25 × ATR beyond C (the completion), not beyond O or X. 5-0 stop: 0.30 × ATR beyond the 0.618 retracement of BC. The 0.50 level is the entry; a close beyond 0.618 invalidates the symmetry.

The trade plans

Shark plan: entry at C on reversal bar; stop 0.25 × ATR beyond C; target 1 at 0.382 of OX (40%), target 2 at 0.618 of OX (40%), target 3 at point O (20%). Risk-reward at target 2 ≈ 1:2.0. Win rate ~52%.

5-0 plan: entry at D (0.50 of BC) on reversal bar; stop 0.30 × ATR beyond the 0.618 of BC; target 1 at 0.382 of BC (40%), target 2 at 0.618 of BC (40%), target 3 at point B (20%). Risk-reward at target 2 ≈ 1:1.8. Win rate ~56%.

Worked 5-0 example

X = $50, A = $60 (XA = $10 up). AB extends 1.13 of XA = $11.30, B = $71.30. BC retraces 1.618 of AB = $18.24, C = $71.30 − $18.24 = $53.06. CD retraces 0.50 of BC = $9.12, D = $53.06 + $9.12 = $62.18.

Entry at $62.18. 0.618 of BC = $11.27, level = $53.06 + $11.27 = $64.33. Stop at $64.33 + (0.30 × $3.00) = $65.23. Target 1: 0.382 of BC = $6.97, level = $62.18 − $6.97 = $55.21 (bearish 5-0). Target 2: 0.618 of BC = $11.27, level = $50.91. Risk = $65.23 − $62.18 = $3.05. Reward to target 2 = $11.27. Risk-reward ≈ 1:3.7.

When to skip

Skip the Shark when AB exceeds 1.0 of XA — the pattern is then a Three Drives candidate. Skip the 5-0 when BC retraces less than 1.618 of AB — the geometry collapses into a flat ABC correction with no harmonic edge.

The Shark and 5-0 reward traders who respect their distinct geometry. Treat them as their own systems, validate every ratio.