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The return of the dragon Topic Rating:
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ben2k9
Posted : Wednesday, April 15, 2009 9:33:58 PM

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wse
Posted : Wednesday, April 15, 2009 10:42:39 PM
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if you make it light blue or light purple, it could be nessie too! :D
davidjohnhall
Posted : Wednesday, April 15, 2009 10:48:37 PM

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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
ben2k9
Posted : Wednesday, April 15, 2009 11:14:57 PM

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FEED just broke out of a dragon....


davidjohnhall
Posted : Wednesday, April 15, 2009 11:46:34 PM

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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 
ben2k9
Posted : Thursday, April 16, 2009 8:17:25 AM

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Can you post your scan that finds these?  I just stumble across them in the course of my other scans..
ben2k9
Posted : Thursday, April 16, 2009 8:20:00 AM

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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...
davidjohnhall
Posted : Thursday, April 16, 2009 9:50:04 AM

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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
bknight
Posted : Thursday, April 16, 2009 1:19:07 PM
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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?
davidjohnhall
Posted : Thursday, April 16, 2009 1:54:07 PM

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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
fpetry
Posted : Thursday, April 16, 2009 2:07:55 PM
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Dragon indeed, nice, I like it.  I think it looks very similar to SBUX? 
ben2k9
Posted : Thursday, April 16, 2009 5:54:52 PM

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johnlc
Posted : Thursday, April 16, 2009 6:35:56 PM
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DJH:   If this trading thing doesn't work out, you could  try modern art.      Do we get flames on the breakout?  
ben2k9
Posted : Tuesday, April 21, 2009 6:22:48 PM

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update: FIG did not breakout into dragonfire..but FEED is scorching ass.
hiromj
Posted : Wednesday, April 22, 2009 12:17:30 AM
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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?
hiromj
Posted : Wednesday, April 22, 2009 12:18:12 AM
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QUOTE (ben2k9)
update: FIG did not breakout into dragonfire..but FEED is scorching ass.


FIG broke out but the wrong direction (:-((
ben2k9
Posted : Wednesday, April 22, 2009 8:41:53 AM

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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. 
hiromj
Posted : Wednesday, April 22, 2009 8:07:22 PM
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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.....
ben2k9
Posted : Thursday, April 23, 2009 4:44:03 PM

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And today we have breakout!!  a gargantuan one at that.  The dragon lives.

ben2k9
Posted : Thursday, April 23, 2009 4:44:37 PM

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FIG up 40% today.
davidjohnhall
Posted : Thursday, April 23, 2009 5:30:38 PM

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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

hiromj
Posted : Thursday, April 23, 2009 10:47:10 PM
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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
davidjohnhall
Posted : Friday, April 24, 2009 2:09:33 AM

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Nice trade, Michael.  Congrats!
JadeScorpion
Posted : Sunday, April 26, 2009 11:59:31 AM
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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
bobre1
Posted : Sunday, April 26, 2009 3:16:16 PM
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bobre1
Posted : Sunday, April 26, 2009 3:17:13 PM
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oops..

try this link JadeScorpion:

http://forums.worden.com/default.aspx?g=posts&t=26559

Bob
ben2k9
Posted : Monday, April 27, 2009 11:24:40 AM

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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.
StockGuy
Posted : Monday, April 27, 2009 11:35:54 AM

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We've made some network changes that are causing this behavior.  We're working on it.
davidjohnhall
Posted : Monday, April 27, 2009 3:20:17 PM

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Wow -- amazing move on bcrx.  The bar before this move was huge as well.
ben2k9
Posted : Monday, April 27, 2009 5:38:34 PM

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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. 
hiromj
Posted : Monday, April 27, 2009 7:46:28 PM
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I like the TXT dragon. Looks good.
davidjohnhall
Posted : Monday, April 27, 2009 9:04:31 PM

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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
davidjohnhall
Posted : Monday, April 27, 2009 9:09:54 PM

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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
ben2k9
Posted : Monday, April 27, 2009 9:21:21 PM

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another name for this pattern is none other than a classic cup&handle
hiromj
Posted : Monday, April 27, 2009 9:32:29 PM
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QUOTE (ben2k9)
another name for this pattern is none other than a classic cup&handle

Absolutely correct.
davidjohnhall
Posted : Monday, April 27, 2009 10:21:14 PM

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Agreed -- 100%.  The pattern that Oneil credits the beginning of some very major moves. 
hiromj
Posted : Tuesday, April 28, 2009 7:24:09 PM
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Also could be the first leg of a parabolic curve.
yinzer
Posted : Tuesday, April 28, 2009 8:12:41 PM
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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.
johnlc
Posted : Tuesday, April 28, 2009 8:13:18 PM
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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
hiromj
Posted : Wednesday, April 29, 2009 3:27:20 AM
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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.
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