Shark-32 Candlestick Pattern Breakout Strategy

Summary

This strategy identifies a three-candle pattern in which lows rise consecutively while highs fall, then tracks the high and low of the first candle as breakout levels. It enters long when the close crosses above the high or short when it crosses below the low, allowing one trade per confirmed pattern. Profit targets project the pattern’s full range beyond either boundary, while percentage-based stops limit losses.

The document describes the rules and lists a BTC/USDT futures backtest setup at a two-hour interval for October 2024, but it gives no performance results. It warns that sideways markets may produce false breakouts, fast moves can cause slippage, and results depend on stop and target settings. The source also shows that the chart’s target-line drawing code is commented out, and the stated stop behavior should be checked against the implementation before relying on it. Volume, market-regime, and position-sizing filters are suggested as possible additions.

Key ideas

• The setup detects three candles with successively higher lows and lower highs.
• A close crossing the first candle’s high or low triggers a long or short entry.
• Targets project the pattern’s range beyond its boundaries, and stops use percentage settings.
• The rules can produce false signals in ranging markets and may be sensitive to execution costs and parameters.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.