Dragon pattern

No. The drop from the Doubletop fails, thus if so, we are going higher, making a 3rd top.

(and with the opposite pattern, when the rally fails from the double bottom we are making a 3rd, lower bottom)
 
For the record, that previous dragon pattern eventually failed and it never made higher than 1001, with a meltdown on Wendesday afternoon.

Here is a possible new one, just forming, best seen on the NDX:

a44vvn.png


Height is 40 pts, looks like we have a Failure at 1763, on the SMA...

If we go below 1760, the pattern is invalidated...
 
Looks like I pulled the trigger a bit early on this one, and eventually there was no Failure, the doubletop dropped without one.

What I thought to be a Failure was just an SMA bounce. It also happened a bit earlier than the failure zone. The correct zone was around 1758-60 and as this chart shows the price went through it without even trying to reverse....

fmrthw.png
 
This bigger one was only good for 3 pts so far, although it might signal the end of this 4 days selloff...

wswzns.png


Height : 8 pts

Failure : should have happened 1 pt higher
 
Here is an interesting one. Usually the Height is measured from the 1st bottom to the Midpoint of the W, but here it worked out measuring the Height from the 2nd bottom to the Midpoint and it still dropped the amount of the 1st bottom-Midpoint measurement:
(chart is 5 days/15 mins)

nyy69x.png


1st bottom-Midpoint: 23 pts

Midpoint-2nd bottom: 34 pts

2nd bottom-Failure: 18 pts (about half of 34)

Failure-3rd bottom: 23 pts (same as the first)
 
Thanks for the info here Pekelo . I have been using the "Pekelo" dragon as a continuation signal and find it to be reliable . I found the retracemnet can be up to 62 % before the failure point .
 
Long time no see, it might have just signaled the top of this relentless rally:
(10 days/hourly chart)

5364qt.png


Height: 19 points

Failure : at 10 pts

3rd top: 16.5 pts
 
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