Dragon pattern

Today's upside down dragon was brought to you by the Stanley Cup finals, hopefully won by the Penguins:

234j78.png


Best seen on the NDX chart: (perfect math)

Height: 13 pts

Failure : at 1497

3rd top: 509~510
 
Quote from Pekelo:

Today's upside down dragon was brought to you by the Stanley Cup finals, hopefully won by the Penguins:
More...

...and we made it to game 7, the series is at 3:3... :)

What is better than to win in Detroit?
 
After a long while, it is showing up again on the 5 days/hourly chart:

25fkgzk.png


Math-wise it is perfect:

Height : 13 pts

Failure : 6 pts at the SMA line

3rd bottom: 13 pts
 
So let's see how big of a bump or rally we got out of the 880 SPX 3rd bottom:

x4gokw.png


We got a 7 pts bump. Not a rally, just a decent bump. Again, the pattern doesn't predict the size of the rally/bump, only that it will happen.
 
Still in the process of making the 3rd top:

Quote from Pekelo in the ES Journal:

We also have a dragon failure at 944 SPX and since the Height is almost 8 points, the 3rd top is expected around 951-52...
More...

286s3s9.png


Edit: New high at 951 (3:45 pm)
 
By the way the recent lows 9 trading days ago were also predicted with the dragon pattern only it presented itself with an aberration.

I call something an aberration when the technical pattern for some reasons doesn't play out the way how it is expected. It could be a breaking news or a change in the rules causing it, everything is there, but the pattern diverge, aberrate from the expected version.

dfj4np.png


We had a giant dragon on the daily chart with a Height of 42 points. On July 6th or 7th it should have gone at least a good 10 points higher, getting close to the SMA line at 910, but it didn't. It stopped going up at 898.
Nevertheless the pattern played out as it would have done according to expectation and dropped the required 40 points from that never happened SMA line touch to make the 3rd bottom and rallied from there like hell...
 
We have a formation in progress with 2 possible readings, showing here the first version:

166yduf.png


1. Height was 13 pts and Failure at 948 this morning, so 3rd top at 961.

2. Height is the same 13 points, but the 2nd top happened only today at 10 am at the same level as yesterday(957). The new Failure occured later at 951, thus the 3rd top would be at 951+13=964.
 
Quote from Pekelo:

...Q: What is the dragon pattern?
A: It is a failed double bottom pattern, where a failure occurs around the half of the W's height...
More...
Fancy stuff. But why not just call it a lower high?
 
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