The pattern "Dragon" is formed in a falling market. Its formation begins with the Head (1). It represents a local maximum from an upward correction in a falling market. After the formation of the Dragon Pattern Head, the market continues to decline, as a result of which two minima appear successively on the price chart (approximately at the same level). This is the "Legs of the Dragon".
"The first leg of the Dragon" (2). The second leg is formed after the repeated testing of the same support level (4). The difference between the lows of the first and second legs can be from 5 to 10 percent.Between the Feet of the Dragon or before the 2nd minimum there must be a peak (local maximum - correction from the descending trend), which was called the "Dragon's Hump". In its essence, the formation "Leg-Hump-Nog" is a figure of the turn "Double bottom". The height of the hump is 38-50% of the height of the Head.If a divergence is formed on the second leg, then this is the signal that confirms the appearance of the pattern
"The first leg of the Dragon" (2). The second leg is formed after the repeated testing of the same support level (4). The difference between the lows of the first and second legs can be from 5 to 10 percent.Between the Feet of the Dragon or before the 2nd minimum there must be a peak (local maximum - correction from the descending trend), which was called the "Dragon's Hump". In its essence, the formation "Leg-Hump-Nog" is a figure of the turn "Double bottom". The height of the hump is 38-50% of the height of the Head.If a divergence is formed on the second leg, then this is the signal that confirms the appearance of the pattern