The dragon chart pattern is a unique configuration in technical analysis that resembles the mythical creature it's named after. It is a relatively new pattern among traders, but it has quickly gained recognition due to its distinct appearance and the trading opportunities it presents. This pattern is identified by a specific series of peaks and. Continued. Dragon pattern makes it a bit easier to analyse the Forex market. So, what are its key features and how to build strategies with this trading pattern?
Trading Dragon Pattern The left example shows a Dragon pattern formation from the Dow E-mini futures 30-minute chart. On January 3, 2007, Dow futures formed the head of the Dragon. Prices declined until January 8th in the formation of the first leg. On January 8th, prices tried to recover as they rallied to 12520. A trendline is drawn connecting the top of the head and top of the first leg. On.. The dragon pattern is a strong signal that the market is preparing for a trend reversal. When you understand what it looks like and how to trade it, the dragon pattern can help you enter with confidence, not guesswork.