Forex trading is one of the most popular and lucrative financial markets in the world. With a daily trading volume of over $5 trillion, it presents a great opportunity for traders to make profits. However, with the vast number of forex trading strategies, choosing the right one can be a daunting task. Two of the most popular forex trading strategies are Deep Crab and Shark patterns. In this article, we will discuss the differences between the two and which is better for forex trading.
Deep Crab Pattern
The Deep Crab is a pattern that is formed when the price of a currency pair reaches a level that is lower than the previous low. The pattern is characterized by a sharp and quick reversal, which can lead to significant profits for traders. The pattern is identified by four points, which are labeled X, A, B, and C.
The X point is the starting point of the pattern and is the highest point of the price movement. The A point is the lowest point of the price movement from the X point, and the B point is a retracement of the price movement from the A point. The C point is the highest point of the price movement from the B point, and it is typically lower than the X point.
Traders who use the Deep Crab pattern look for a reversal at the C point, which is where they enter a long position. They then place their stop loss below the A point and take profit at the completion of the pattern.
Shark Pattern
The Shark pattern is another popular forex trading strategy that is commonly used by traders. The pattern is characterized by a sharp and quick reversal, which can lead to significant profits for traders. The pattern is identified by five points, which are labeled X, A, B, C, and D.
The X point is the starting point of the pattern and is the highest point of the price movement. The A point is the lowest point of the price movement from the X point, and the B point is a retracement of the price movement from the A point. The C point is the highest point of the price movement from the B point, and it is typically lower than the X point. The D point is the completion of the pattern, and it is typically lower than the A point.
Traders who use the Shark pattern look for a reversal at the D point, which is where they enter a short position. They then place their stop loss above the X point and take profit at the completion of the pattern.
Which is Better for Forex Trading?
Both the Deep Crab and Shark patterns are effective forex trading strategies that can lead to significant profits for traders. However, the success of each pattern depends on the market conditions and the trader’s skills and experience.
The Deep Crab pattern is better suited for traders who are looking to enter long positions. This is because the pattern is characterized by a sharp and quick reversal, which can lead to significant profits for traders who enter the market at the right time. However, the pattern requires traders to be patient and wait for the completion of the pattern before entering the market.
The Shark pattern is better suited for traders who are looking to enter short positions. This is because the pattern is characterized by a sharp and quick reversal, which can lead to significant profits for traders who enter the market at the right time. However, the pattern requires traders to be quick and enter the market as soon as the pattern is identified.
In conclusion, both the Deep Crab and Shark patterns are effective forex trading strategies that can lead to significant profits for traders. The choice between the two depends on the market conditions and the trader’s skills and experience. Traders who are patient and looking to enter long positions should consider the Deep Crab pattern, while traders who are quick and looking to enter short positions should consider the Shark pattern.
