Just another name for a double bottom.
Double bottoms are strong reversal patterns...but there has to be something to reverse in order to identify them as 2B Dragons. Thus the reasoning behind drawing down trend lines on the charts. Naming the components of the pattern is just for fun although you can't really ID the pattern until you see support holding at the "dragon's front feet".
2/06/2013 The pattern shows up intra-day as well...
Divergence at the dragon's Rear-feet suggested a possible end to the down trend was imminent. The 2x divergence (TRIX histo and MACD) at the dragon's Front-feet said BUY...this had to do some work to break free of the level around the dragon's HUMP (over/under resistance) but the Reverse-Divergence there was encouraging.
The green and dark red coloring in the indicator pane is the MACD Trend indicator, showing cross-overs of the aqua Fast/Slow line and the red smoothing line. The solid, thin horizontal marks the MACD zero line.
2/07/2013 Another 2xD 2B Dragon
3/07/2013...Charts and women
Choosing which stocks to trade can be likened to how men (at least this man) choose their women friends...The initial look, the physical attraction is what first grabs a man's interest. This encourages him to to take the second step and talk to her, hoping that he will continue to admire what his first instinct found visibly interesting - potentially moving on toward developing a relationship. If a man can't get past the 1st and 2nd steps, he might still look at her admiringly from time to time but most likely no further action will be taken.
I use a similar method for picking which stocks to follow - I look first at it's chart. If I see a pattern I like, I'll then take the second step and glance at the fundamentals, looking for additional reasons to continue to explore my options. And even if the 2nd step fails to spark my interest further, I may still glance at its chart from time to time...
3/07/2013...Ideas
3/07/2013...Ideas
I get ideas from many different sources.Today an online friend, kensey, replied to a post I made on a new website he's in the process of creating. He is the creator of the very successful ClearStation website that melded Technical, Fundamental and Community analysis which he operated for over ten years before selling it to one of the major on-line trading companies.
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...
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...
Today he presented me with MITK which is exhibiting a 2B dragon pattern on the monthly chart...Below is a snapshot of his post and my reply. Take note of the increased volume that occurred on the run ups after both sets of dragon feet printed. Click the image to enlarge.
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...
3/12/2013
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.
3/22/2013
Different time frames but plenty of patterns on each.
3/12/2013
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.
Different time frames but plenty of patterns on each.
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