Registered User
Joined: 7/1/2008
Posts: 889
|
|
|
Registered User
Joined: 12/18/2008
Posts: 150
|
if you make it light blue or light purple, it could be nessie too! :D
|
|
Registered User
Joined: 6/6/2005
Posts: 1,157
|
hey ben,
You're gonna get me in trouble because we all know that the dragon is not a real pattern! That being said, this one is great! I'm going to watch it and see how it does. It's been awhile since I've traded one.
Oh, someone asked once where I got this image. Not to worry, I paid for the reprint rights.
David John Hall
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
FEED just broke out of a dragon....
|
|
Registered User
Joined: 6/6/2005
Posts: 1,157
|
Wow, nice move! That is pretty much textbook -- volume and all. Run up. Pullback on lower volume. Breakout on volume surge. Stocks that move like that are an inspiration to me. They're out there. They're not just a myth or a fairytale. And they can be scanned for. Too bad this one got away. But an excellent example I'll be keeping in my files.
David John Hall
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
Can you post your scan that finds these? I just stumble across them in the course of my other scans..
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
dragons do exist, but most technicians call them bull pennants. I personally like the dragon since its the only thing that comes to mind when I see one now...
|
|
Registered User
Joined: 6/6/2005
Posts: 1,157
|
Hey Ben, here's the orignal post where I explain how I scan for these.
http://www.worden.com/training/default.aspx?g=posts&t=26559
David John Hall
|
|
Registered User
Joined: 12/19/2004
Posts: 415
|
I built your indicator (btw you need to add instructions that the indicator should be on the same price scale, mine wasn't originally and it did not look good) and found that FIG had a value of ~2.35. How does this meet the criteria of less than 0.10?
|
|
Registered User
Joined: 6/6/2005
Posts: 1,157
|
Hey BK,
There have been numerous threads on the dragon, and I think one of them explained that. It's been around for over a year now, always hanging around.
On 4-8-09 FIG met the congitions perfectly. But yes, on the day it was posted it was not technically a dragon but if you look at the chart, it's a pennant. And that's what the scan looks for.
When I scan I am looking for the things in my original posts. but if someone posts a pennant and I see a dragon, i think: dragon. And off we go. Here's what I saw when I looked at the posted chart of FIG:
So that works for me.
Actually, if I'm being honest, here's what i really see:
:)
David John Hall
|
|
Registered User
Joined: 12/2/2004
Posts: 1,775
|
Dragon indeed, nice, I like it. I think it looks very similar to SBUX?
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
|
|
Registered User
Joined: 2/21/2007
Posts: 797
|
DJH: If this trading thing doesn't work out, you could try modern art. Do we get flames on the breakout?
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
update: FIG did not breakout into dragonfire..but FEED is scorching ass.
|
|
Registered User
Joined: 1/30/2009
Posts: 267
|
Figures, I bought into FIG.
Should have bought FEED.
Does it look like we have another dragon in XOIL? Looks like decent support but also decent resistance. Any opinions? Maybe a decent move with USO gapping down the other day. Which follows which?
|
|
Registered User
Joined: 1/30/2009
Posts: 267
|
QUOTE (ben2k9) update: FIG did not breakout into dragonfire..but FEED is scorching ass.
FIG broke out but the wrong direction (:-((
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
QUOTE (hiromj) QUOTE (ben2k9) update: FIG did not breakout into dragonfire..but FEED is scorching ass.
FIG broke out but the wrong direction (  (
That's why you MUST wait until the breakout before buying, because until the pattern completes, there is absolutely nothing there.
|
|
Registered User
Joined: 1/30/2009
Posts: 267
|
QUOTE (ben2k9) QUOTE (hiromj) QUOTE (ben2k9) update: FIG did not breakout into dragonfire..but FEED is scorching ass.
FIG broke out but the wrong direction ( (
That's why you MUST wait until the breakout before buying, because until the pattern completes, there is absolutely nothing there.
You are correct, thanks for the advice. But, I protected this trade very well and lost almost nothing. In fact, back to profitable today.....
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
And today we have breakout!! a gargantuan one at that. The dragon lives.
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
FIG up 40% today.
|
|
Registered User
Joined: 6/6/2005
Posts: 1,157
|
On nearly 4 times average volume. That's a nice looking breakout. Hopefully hiromj was still in when it ran. Were you in hiromj?
David John Hall
|
|
Registered User
Joined: 1/30/2009
Posts: 267
|
QUOTE (davidjohnhall)
On nearly 4 times average volume. That's a nice looking breakout. Hopefully hiromj was still in when it ran. Were you in hiromj?
David John Hall
Thanks guys. Well, that was a very pleasant surprise this morning when I turned on my computer. Yes, I did hang on and locked in a nice profit. And still in. Thanks Ben for pointing out this trade. All you guys are the greatest.
Cheers,
Michael
|
|
Registered User
Joined: 6/6/2005
Posts: 1,157
|
Nice trade, Michael. Congrats!
|
|
 Gold Customer
Joined: 10/7/2004
Posts: 30
|
DavidJohnHall:
I used your link indicating the path to your original post and discussion on the Dragon Formation but was unable to drill down to it. Can you repost it or indicate which forum area it is located?
Thanks
|
|
Registered User
Joined: 10/7/2004
Posts: 886
|
|
|
Registered User
Joined: 10/7/2004
Posts: 886
|
oops..
try this link JadeScorpion:
http://forums.worden.com/default.aspx?g=posts&t=26559
Bob
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
BCRX broke out of a dragon...humongous gain!!
FYI - moderators, I'm not sure if you're aware but there are technical difficulties with the discussion forum the past few days. The site is glitchy with keeping me signed in, and also when I click a discussion thread on the home page it does not take me to the link, it brings me to the forums page and signs me out.
|
|
Administration
Joined: 9/30/2004
Posts: 9,187
|
We've made some network changes that are causing this behavior. We're working on it.
|
|
Registered User
Joined: 6/6/2005
Posts: 1,157
|
Wow -- amazing move on bcrx. The bar before this move was huge as well.
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
DJH, I just plugged in your dragon scan method. Thanks for posting that! ( a while back)
There seems to be quite a few dragons setting up recently..including some pretty well known names like GE & TXT. check -em out.
|
|
Registered User
Joined: 1/30/2009
Posts: 267
|
I like the TXT dragon. Looks good.
|
|
Registered User
Joined: 6/6/2005
Posts: 1,157
|
I have also noticed that they seem to cluster based on market activity. And seems like we've been in hunting season lately! For me they really do help map out the trades and visualize executions.
David John Hall
|
|
Registered User
Joined: 6/6/2005
Posts: 1,157
|
Great looking dragon on TXT. I like the clearly defined risk and entry. If it breaks out I'd take 1/2 off at the top of the head -- the $14 area and let the rest run.
Good luck all.
David John Hall
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
another name for this pattern is none other than a classic cup&handle
|
|
Registered User
Joined: 1/30/2009
Posts: 267
|
QUOTE (ben2k9) another name for this pattern is none other than a classic cup&handle
Absolutely correct.
|
|
Registered User
Joined: 6/6/2005
Posts: 1,157
|
Agreed -- 100%. The pattern that Oneil credits the beginning of some very major moves.
|
|
Registered User
Joined: 1/30/2009
Posts: 267
|
Also could be the first leg of a parabolic curve.
|
|
Registered User
Joined: 3/30/2008
Posts: 77
|
TXT looks great but... I checked it's after hours it looks to have a lot of volume and it's down 9%. Just came out with lower earnings (please check).
That being said, if the stock does what has been outlined in how to play a Dragon's move up, is it still a go? A tight stop always seems to be a must with this play.
|
|
Registered User
Joined: 2/21/2007
Posts: 797
|
David John: Know you are into backtesting. Whose program do you use? Going to try some strictly systematic trading, got a couple of new systems i'd like to try out . Instead of just paper trading them for several weeks, i thought a backtesting program would be quicker. If you don't mind passing along any info. Thanks
|
|
Registered User
Joined: 1/30/2009
Posts: 267
|
QUOTE (yinzer) TXT looks great but... I checked it's after hours it looks to have a lot of volume and it's down 9%. Just came out with lower earnings (please check).
That being said, if the stock does what has been outlined in how to play a Dragon's move up, is it still a go? A tight stop always seems to be a must with this play.
FIG recently broke out to the downside then had a very nice upday. Check it out.
|
|
|
Guest-1 |