Triple bottom. RSI. Dragon. 8 tick failure. Should be a good swing long entry. Oops. I'll stick w/ price action and S/R.
http://www.trading-naked.com/JerrysDragonPattern.htm http://www.trading-naked.com/JerrysDragon_more_examples.htm not endorsing it or condemning it... the two legs have been called double bottom, 2B, legs, swing failure, and I forgot the other dozen names... If you turn the chart upside down you'll see a bearish one almost identical.
Did I confuse you? I apologize, I thought it was rather obvious. We had 2 dragons today, a small one I posted earlier and I refered to it by ticks (because it was small) and this bigger one, showing here on the cash: Those who know what I am talking about might notice that I cheated with the Failure, because it actually happened lower. That's what practice makes. I have a thread about it. Search for it, oh hell, here it is... http://www.elitetrader.com/vb/showthread.php?s=&threadid=154290&highlight=dragon+pattern
My calculator is out of reach, but I believe you`re right Where did this "rule" come from in the first place? I dug up some old threads on ET, but did not get much wiser in the end. I have not used it to trade yet, but I`ve observed in amazement how many times this pattern plays out. How do you trade this? Do you enter a directional trade after you believe a swing high or low has been made? Thanks, LF
IMO. Trading all these patterns (or your own insane predictions if you are like me) is more like learning to trade a horizontal line. What you do to manage, add and exit the trade (winning or losing) is more important than the low risk tactical entry. <---9 more posts to go. Whew. I could never make it to 233.