Dragons in the Market !

Here is a pattern that was recognized some time ago. The thing about it is that it clearly identifies elements of support and resistance. This pattern identifies short term reversals in the trend which are very tradable.

If you look at the first chart which labels the key elements. The Back will always rise to test the Bottom of the tail-hook (support/resistance). After the second leg is in place you can buy the breakout of the Back price.

Now here is an interesting point that breakout will rise to the level of the top of the tail (support/resistance). If the bottom of the head does not come down and violate the top of the back we have a high probability of continuation.

Check this out for yourself before trading this setup.

Happy Trading !
RainMaker