Dragons work in all timeframes and in all types of trading instruments.

ENTRY1:ONCE second leg is confirmed(4)...DRAW TRENDLINE from head(1) to Hump(3)..I prefer to draw it as neat as possible,with no outside points until 4 is formed,but really there isn`t much difference if we draw it straight trough the hump..remember,until 4 is not formed we don`t have the pattern...ENTRY is done when prices CLOSE above the trend line.

ENTRY2:when prices CLOSE above the HUMP level(3)

STOP:a few ticks below the lowest of the 2 legs,in this case,below 2

TARGETS:1-127% OF the second leg range

2-A previous swing high point

3-at or near the head level 1

You can chose,entry1,2 or both ,splitting your order size in 2...though I personally prefer 1

You can chose any of the targets,by themselves (close 100% of the position at a target level)or as a combo...though I personally use my common sense and if there is a previous swing high located near the 127% point..I chose that area as target area and,when there,I micromanage.
Will try to pick some Dragon in a smaller tf so that I can show you actual trades and my reasoning behind them..or if you find any please feel free to post it here.

Attached Images

dragon2.gif (84.1 KB, 1882 views)

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Somos mortales hasta el primer beso..y la segunda copa de vino