The following chart was just posted by Larry
Pesavento as one of his trades of the year using of course his Pesavento
patterns. When I saw it I could not help notice "The Dragon"
pattern so I figured I would mark up the pattern and post it. Some
astute traders may notice that the legs of the dragon are nothing more
than what is referred to technically as a "W" bottom but the
key is that "The Dragon" encompasses support and resistance
before during and after the Bottom.
Once your mind begins to see the dragon you will start to key in on the
support and resistance areas which are the elements of "The
Dragon" and that will tell you to how it will unfold preparing you
for the trade. Also, note that this is a daily chart. All of the other
examples I have posted have been short term tick or minute charts. This
pattern occurs on all time frames.