# Overextension Reversal Detector Overextension Reversal Detector is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Detects bullish and bearish Shark patterns from confirmed swings: an AB leg extending 1.13-1.618 of XA beyond the X pivot, with the completion band bracketed by the whole 0X leg's 0.886 retracement and 1.13 extension. The reversal zone, measured ratios, invalidation line and staged targets at 0.382 and 0.618 of the BC leg are all drawn, with twelve alerts through the pattern's life. - Indicator in the LuxAlgo Library, by LuxAlgo, published May 27, 2026. - Access: free. - Concepts: [Shark](https://www.luxalgo.com/library/concept/shark/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=y1ibku0qan2dx7lac531e17o - Page: https://www.luxalgo.com/library/indicator/shark/ **Overextension Reversal Detector** finds the harmonic structure known as the [Shark®](https://www.luxalgo.com/library/concept/shark/), whose middle section is a failed breakout, and manages it through its lifecycle. From a swing zigzag it qualifies the 0, X, A, B sequence when the AB leg overruns the X pivot into the 1.13-1.618 band of XA, then projects the completion band across the whole 0X leg, restricting the reversal zone to the confluence when the 1.618-2.24 extension of AB overlaps it. Point and ratio labels report every measured value, so the geometry can be checked, not trusted. ## How to Trade with the Overextension Reversal Detector? - **Setup**: the zone is projected the moment B qualifies, planning room before price arrives; a run beyond B without reaching the zone retires it. - **Completion and reaction**: trading into the zone completes the pattern, but C stays live while price probes deeper. The reaction close back through the near edge freezes C and prints the targets. - **Staged targets**: dotted lines where the final BC leg retraces 0.382 and then 0.618, the fast profit-taking the wide band pushes management toward. - **Invalidation**: a decisive close past the far 1.13 measurement of 0X grays the reversal zone and any printed target lines. Treat the move as a continuation instead. ## Overextension Reversal Detector Settings - **Swing Length** (default 8): pivot length forming the 0, X, A and B points; larger values find rarer structures. - **AB / XA Range** (defaults 1.13 and 1.618): the required overextension beyond X. - **C / 0X Range** (defaults 0.886 and 1.13): near and far edges of the completion band. - **BC / AB Range** (defaults 1.618 and 2.24): the confluence projection from B. - **Require AB Confluence** (default off): accept only structures whose two projections overlap. - **Target 1 (BC Retracement)** (default 0.382) and **Target 2 (BC Retracement)** (default 0.618). - Style: **Point Labels**, **Ratio Labels**, **Target Lines**, **Invalidation Line**, **Show Swings** (all on). ## Frequently Asked Questions ### How does the Shark relate to the Cypher? Both are built around an overextended middle leg, but the [Cypher](https://www.luxalgo.com/library/indicator/cypher/) runs on to a D completion measured against its XC move, while the Shark finishes at C inside the wide 0.886-1.13 band of 0X. That width is why management leans on staged targets rather than a full reversal. ### Why does the C point keep moving? C is the working extreme while price sits in the band, so deeper probes legitimately extend it. It freezes on the reaction close back through the near edge, the moment the targets are measured. ### What are the twelve alerts? Bullish and bearish pairs of six events: Setup when B qualifies, Completion on first trade into the zone, Reaction on the rejection close, Invalidation beyond the 1.13 extension, plus Target 1 and Target 2. --- Bat®, Crab®, Shark®, AB=CD® and 5-0® are registered trademarks of their owner, used here only to identify the patterns. LuxAlgo's tools are independent implementations and are not affiliated with or endorsed by the trademark owner. ## Related indicators - [Cypher](https://www.luxalgo.com/library/indicator/cypher/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/cypher.md - [Harmonic Pattern Detection](https://www.luxalgo.com/library/indicator/harmonic-pattern-detection/) (Harmonic Patterns): markdown at https://www.luxalgo.com/library/indicator/harmonic-pattern-detection.md - [Half-Retracement Reversal Detector](https://www.luxalgo.com/library/indicator/5-0/) (5-0): markdown at https://www.luxalgo.com/library/indicator/5-0.md - [Measured Move Detector](https://www.luxalgo.com/library/indicator/abcd/) (ABCD): markdown at https://www.luxalgo.com/library/indicator/abcd.md - [Three Drive Pattern Detector](https://www.luxalgo.com/library/indicator/three-drive-pattern-detector/) (Three Drives): markdown at https://www.luxalgo.com/library/indicator/three-drive-pattern-detector.md - [Potential Reversal Zone](https://www.luxalgo.com/library/indicator/potential-reversal-zone/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/potential-reversal-zone.md - [Anti-patterns](https://www.luxalgo.com/library/indicator/anti-patterns/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/anti-patterns.md - [RSI BAMM](https://www.luxalgo.com/library/indicator/rsi-bamm/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/rsi-bamm.md --- Source: https://www.luxalgo.com/library/indicator/shark/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/