Hello steemians how are you ? I hope you all are well. Its a great opportunity to read season 3 lectures of the crypto academy and I found it a really interesting and creative way to increase quality content and knowledge. This is the last week of season 3 hope new season will come soon.

Today professor @cryptokraze explain a wonderful lecture on Sharkfin pattern for trading. After complete analysis and reading now I am submitting my homework post to professor.

HOMEWORK by @rinkisaxena

Question 1:

What do you understand by Sharkfin pattern for trading. Explain using suitable example.

Answer 1:

We all know that market charts always work on patterns. Price in the market move up and down creating clear and trade based patterns. In the series of these patterns there is a pattern exist name as a shark fin pattern. When the Market take trend reversal from the previous trend then it create a peak at reverse point, that point is known as the Shark fin. That pattern is known as a Sharkfin pattern in market.

There are two types of Sharkfin pattern for trading, uptrend Sharkfin pattern and downtrend Sharkfin pattern. Let us discuss them one by one and take example of each.

Uptrend Sharkfin pattern:

When market is in Downtrend and after creating a Sharkfin at lower point it take trend reversal and move uptrend, then the pattern is known as uptrend Sharkfin pattern. These patterns are used to make a buy trade in the market of a particular asset.

For example:

In the above BTCUSD chart we can see that there is a downtrend in the market and after taking a sharp peak in down it move uptrend again. This is how a uptrend Sharkfin pattern created.

Downtrend Sharkfin pattern:

When market is in uptrend and after creating a Sharkfin at higher point it take trend reversal and move downtrend, then the pattern is known as downtrend Sharkfin pattern. These patterns are used to make a sell trade in the market of a particular asset.

For example:

In the above BTCUSD chart we can see that there is a uptrend in the market and after taking a sharp peak in up it move downtrend again. This is how a downtrend Sharkfin pattern created.

This is all about Sharkfin pattern for trading description.

Question 2:

Implement RSI to detect Sharkfin pattern. Give examples.

Answer 2:

Implement RSI indicator on Shark fin pattern first we have to apply relative strength index indicator on chart. So to apply indicator on chart we have to follow these steps.

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First click on the fx indicator option where you can see multiple indicators listed that trader and user can use in their trading.

On the search bar search relative strength index RSI the first option is the mean indicated that you have to use click on that and your indicator get applied at the bottom of the chart.

There are two main conditions of relative strength index indicator that one should have follow for buy and sell trade and also for the both uptrend and both Shark fin patterns. There are two levels in relative strength index indicator level 30 and level 70. When price is below 30 then it is in over-sold condition and when price is above 70 then it is in Over-brought condition. These two levels help us to determine Over-brought and over-sold conditions.

Uptrend Sharkfin pattern detected by RSI:

When market is in Downtrend and after creating a Sharkfin at lower point it take trend reversal and move uptrend, then the pattern is known as uptrend Sharkfin pattern. These patterns are used to make a buy trade in the market of a particular asset. To determine it with RSI we have to use situation that RSI must be below 30 making a peak and then move upward.

In the above XRPUSDT chart you can see that when RSI move below 30 it creates a peak and move back upward. This create a Sharkfin pattern in the main trading page.

Downtrend Sharkfin pattern detected by RSI:

When market is in uptrend and after creating a Sharkfin at higher point it take trend reversal and move downtrend, then the pattern is known as downtrend Sharkfin pattern. These patterns are used to make a sell trade in the market of a particular asset. To determine it with RSI we have to use situation that RSI must be above 70 making a peak and then move downward.

In the above XRPUSDT chart you can see that when RSI move above 70 it creates a peak and move back downward. This create a Sharkfin pattern in the main trading page.

This is how we can use Sharkfin pattern for trading using RSI Indicator. This indicator help and make things easy to determine.

Question 3:

How to make entry and exit point in the market using Sharkfin pattern.

Answer 3:

There are 4 situations in which we can buy and sell our trades and also make entry and exit in the market.

To make entry in buy and sell trade we normally use RSI indicator and chart pattern.

To make exit from buy and sell trade we normally use RSI indicator and chart pattern with stop loss and take profit lines.

ENTRY AND EXIT USING BUY TRADE IN MARKET:

Entry buy trade:

Entry trade in the market always take place when there is a uptrend Sharkfin pattern in Market. So, first look for a downtrend and in this downtrend RSI break below 30 level. After that soon RSI move upward and go above 30. When rsi move above 30 just above the level 30 we can buy our trade. This is how we can take entry in our market.

The main point is to make entry in the market using Buy trade above 30 is to take buy just above 30.level near 31-35.

In the above XRPUSDT chart we can clearly see that we take a buy trade when relative strength index line move above 30. This is how we have to take entry in the market.

Exit from buy trade :

As we discussed to take exit from market we have to use take profit and stop loss in the trade. When we buy the trade above 30 level we have to put our stop loss below the Shark fin point. With the same ratio 1:1 risk: reward, we have to take the take profit in the market.

As you can see in the above XRPUSDT chart we apply stop loss just below Shark fin point and in the same ratio we apply the take profit. This risk reward ratio is 1:1.

Entry sell trade:

Entry trade in the market always take place when there is a downtrend Sharkfin pattern in Market. So, first look for a uptrend and in this uptrend RSI break above 70 level. After that soon RSI move downward and go below 70. When RSI move below 70 just below the level 70 we can sell our trade. This is how we can take entry in our market.

The main point is to make entry in the market using Sell trade below 70 is to take sell just below 70.level near 69-65.

In the above XRPUSDT chart we can clearly see that we take a sell trade when relative strength index line move below 70. This is how we have to take entry in the market.

Exit from sell trade :

As we discussed to take exit from market we have to use take profit and stop loss in the trade. When we sell the trade below 70 level we have to put our stop loss above the Shark fin point. With the same ratio 1:1 risk: reward, we have to take the take profit in the market.

As you can see in the above XRPUSDT chart we apply stop loss just below Shark fin point and in the same ratio we apply the take profit. This risk reward ratio is 1:1.

This is how we have to take entry and exit from the Market using Sharkfin pattern and stop loss+ take profit.

Question 4:

Create 2 demo trade in the market using Sharkfin pattern.

Answer 4:

To Make two demo trades we are choosing short time frame 1mins with 1:1 risk: reward. In two coins DASHUSDT and
In this we will be taking entry as buy and sell entry points and take exit by using take profit and stop loss in the market.

DASHUSDT:

Buy trade:

When relative strength index indicator move below 30 and jump back above 30 then on jump near 31 to 35 we buy our trade and apply stop loss and take profit at 1 ratio 1 risk reward. Buy at $229.65.

Take profit exit:

After few minutes our take profit get it by creating a good Shark fin pattern from downtrend to uptrend our take profit hit and we get profitable trade of hundred assets of dash coin. Sell at $230.45

XMRUSDT :

sell trade:

When relative strength index indicator move above 70 and jump back below 70 then on jump near 69 to 65 we sell our trade and apply stop loss and take profit at 1 ratio 1 risk reward. Sell at $280.91

Stop loss hit exit:

After few minutes our stop loss get hit by not creating a good Shark fin pattern and move uptrend our stop loss hit and we get loss trade of 99 assets of XMR coin. Re-buy at $281.54.

Conclusion

It is time to summarise our homework post in which we discuss about Shark fin pattern. Shark fin pattern are those patterns that create peak during trend reversal in the market. These two trends are in two formats uptrend Shark fin pattern and Downtrend Shark fin pattern. These two patterns are created during Trend reverse in the market. To make Shark fin pattern more clear and visible in the market we can use relative strength index indicator with the level 30 and level 70. We can buy and sell trade according to the suggested method using RSI indicator. By applying take profit and stop loss in the market in correct risk ratio reward we can take exit from the market anytime we want making good profit in the market. This is all about Shark fin pattern trading and its uses. Thank you so much professor for such an interactive and creative lecture on trading patterns.