Just another name for a double bottom.
2B Dragon double bottoms are strong reversal patterns. They form in every market and on any time frame chart.
They have all of the characteristics associated with other variously named double bottom patterns, such as the "Ugly", the "Adam & Eve" and "Eve & Eve". What sets the 2B Dragon apart is the near exact bottom prints and the consolidation area that usually forms - somewhere after the second bottom is complete. Naming it and it's component parts is just for fun.
2B Dragon on an Intraday futures chart (YM or DJIA e-mini)
2B Dragon description
The dragon's back or "hump" prints between the two sets of "legs" and will usually become the first higher high of the new upward trend (provided of course that the legs prove to be support).
A price consolidation area, or a "head" should develop shortly after the two support legs have formed...
Sans the head, the pattern is 'just' a 2B or double bottom...But with or without the head, it's a pattern that traders should be aware of. 2Bs and Dragons happen frequently on very short or long term time frames and they lead to powerful drives that can be taken advantage of when spotted early.
This one formed at and created a session low (orange horizontal line)...illustrating the power of this reversal pattern.
11/21/2013 ... Another 3xD 2B Dragon
showing on two time frames
01/02/2015...another 3xD 2B
They occur with surprising frequency
11/30/2014 ... Another 2B Dragon
showing on multiple time frames...the ES
2/07/2013 ... Another 2xD 2B Dragon
4/20/2013 Fun with patterns:
WAG on price direction based solely on technical patterns...The picture below is showing a "long" term chart...
(2 hour per candle covering about 10 days (ten 24 hour sessions) of the YM e-mini futures)
A busy chart above but its just for some fun...unless it plays out as predicted - then it will be a great call!
We shall see if price consolidates here, under the dragon's "Hump" level of 14500 to form its "head"...
Perhaps it'll do this in Sunday's and Monday's sessions.
Then, if it runs up to the BZ at 14600 or so and meets resistance, I'll consider 14600 to be the neckline
of an inverse H&S...from there I'll be looking for the RH shoulder to develop around ~14500 before any run up resumes...up to the best case "Top of the Tail" target of around 14700...
All bets are off if the red 30 WMA continues to turn price away and 14400 doesn't hold...much depends on whether the wedge has completed a wave 5 pattern or whether it has only completed wave 3 of 5...
Hows that for prediction postulations, LOL?
How often does price action get predicted with that amount of detail...and turn out to be right?
4/30/2013 Fun with patterns Results:
Well, I was a tad off with a lot of the above predictions but I did get the direction right...
3/12/2013 False Flags
Trades don't always work out...The picture below shows an entry I took using 3xD and a 2B dragon pattern as the trade rational. I entered using a Limit+TTO at the Hump, after it broke that level and retraced..
In retrospect, it wasn't a good trade to take in the first place - the low at the front feet was actually higher than the low at the rear feet, thus both entry reasons were wrong. There wasn't divergence and the Dragon never completely landed on the ground...
This is why I always use stops - to minimize the damage done by my sloppy chart reading, by uncooperative markets and by failed entry rational.
9/26/2013 False FlagsThe sets below show another sloppy chart read...a miss-read signal.
Shows how an initial false entry rational can 'snowball' into further false flags - resulting in a poor trade.
Set A ... both are 30 tick charts
Using multiple time frames for perspective...plenty of patterns on each.
3/07/2013...Charts and women
Kensey's new website combines all of the great aspects that ClearStation provided plus he has added many terrific tools to enhance the user's experience; Market Scans and Trackers are two examples of new features he has included so far. I have always found his insights on market action to be of great value, along with his ability to narrow down the sectors/stocks that have above average potential...His new site promises to be even better than his previous one...
After all these years of scanning Daily/Weekly/Monthly charts I have become ever more convinced of the power of technical analysis. Not that technical chart patterns in and of themselves are the be-all-end-all of picking stocks that will move in the way that will guarantee you winning trades...or that stocks and indices will always move in the way a pattern suggests they should, T/A of patterns can certainly help to "cull" the wheat from the chaff...