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Dragon
1-mpower and prasxz:Thanks for your kind comments and for your kind words,hope that you can be interested enough in the patterns to contribute your usual trading wisdom.
PATTERN: DRAGON
What constitutes a Dragon?..check pic,a Dragon is basically defined by 1,2,3,4...very similar to a w bottom or to a double bottom with different trading rules and targets
Rules for a Dragon:
1-head
2-first leg
3-hump
4-second leg
A-SECOND LEG..34 can be anything between 0.618 to 1.27 of first leg 23..THOUGH IT IS BETTER IF THERE IS NO MORE THAN 10% DIFFERENCE between the legs
B-HUMP height 23 MUST be 0.38 to 0.5 of distance from head to first leg 12
So,first thing we do when we think we have a Dragon is to draw fib retracements for 12 and see if 23 is between 38% and 50% of 12..and then we check that 34 is between 0.618 and 1.27 of 23...once we have a Dragon we go to our rulebook(next post) to check how to trade it
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Somos mortales hasta el primer beso..y la segunda copa de vino 
Last edited by SIMBA : 02-25-2008 at 03:29 PM.
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