I guess we just can't have a day without the pattern showing up. Here is today's dragon. It was a bit hard to see and recognize because the W was stretched out but the Failure came right at the SMA line and gave a nice 8 pts drop and a 7 pts bounce. Height: 8 pts Failure: at 5 pts 3rd: 7+ pts After the Failure for a good 5 minutes the market was hesitating 2 points below the Failure point, so there was plenty of time to switch to short. On the chart a Doji showing this after the F. touched the SMA...
Today we had the "mirror image", the upside down dragon: Height : 11 pts Failure: at 5 pts 3rd top: 13 pts Now lately in upside down dragons the 3rd top came about 80% of the Height. Today we made almost 115% of the height and the drop from there was a weak 3 pts only. Maybe this is the sign of the market turning...
Today again the obligatory upside down dragon: Height: 12 pts Failure: at 4 pts (should have gone down to the SMA, making it 6 pts) 3rd top: 13 pts At this time after the 3rd top we got a pretty sweet drop...
I have just noticed, but yesterday's 780 was an even stronger sell signal because there was another bigger upside down dragon present on the 2 days/15 mins chart. Thus the dragon in the previous post was a dragon in a bigger dragon, and they both indicated 780ish for a sell: Height: 23 pts Falure: at 12 pts 3rd top: 22pts I mentioned this earlier, that although the price did go through the SMA before failing, but it didn't close below it, a strong sign that a failure would occur....
Correct, good observation... Here is the newest dragon still in progress, 5 days/15 mins chart: Height : 38 pts Failure: at 17 pts 3rd bottom: projected 714 (cash) P.S.: There were 2 tops at 780 I probably should have used the Wendesday top to make the W more symmetrical, but since they are at the same price level, it doesn't matter...
This morning around 6:45 we already reached 711.25 ES, the equivalent of 714 cash and bounced from there up to 716... As mentioned twice already, the size of the bounce can not be forecasted, so we might find a temporary bottom here and we keep going up or this 5 pts all we got... Nevertheless the pattern worked and now it has played out and been completed...
Freaky but... Pek's dragon worked in GLD too ... failed double top 91.91 Height 0.40 Max high reached 92.06 Perfect match to the penny... So weird how the market does that..
Today's obligatory dragon was rather small, but the whole day was a low volatility affair: Height: 8 pts Failure: at 5 pts 3rd bottom: 7 pts from Failure Ended in a 4 pts bounce...
uptrend and downtrend. trend is your friend all this dragon pattern analysis is waste of time. right now we are in the end of a downtrend from June 2008 selloff and this market is stablizing or even due for short covering profit taking. this market is mostly trading market long term investors with lots of cash still on sidelines and will only comeback after market has rallied 50% from lows. this downtrend which broke support on june 2008 acutally started selling off on 2006 and 2007 but had fake support. and short squeezes at the top. air support finally broke on june 2008 after 2 years of air support. the sub prime b.s was already know in 2007 early.