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2B Dragon double bottoms are good trading patterns on any time frame. They are frequent and reliable Price Action Reversal patterns.
They may or may not always show the same patterns on different time frames but do repeat with amazing regularity...
The 2B Dragon is one of a myriad of double bottom patterns. It is distinguished from the others by the exact two lows on each leg...which happens very often with the DOW 30 e-mini futures...
Nice example of a 2B Dragon double bottom (charts)
https://investorshub.advfn.com/uimage/uploads/2020/1/21/atujb11.jpg
The 2B Dragon price action pattern
The MT SLINGSHOT indicator pattern
Price to indicator divergence
The links above go to pages on my free blog that explain the stuff on the charts below.
The 2B Dragon is a bottoming price-action pattern (a double bottom). They usually reverse a DOWN TREND...but they will often develop in strong up trends too. This one also displayed divergent indicators at the two lows and an MT SLINGSHOT pattern .
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$CVSI CV Sciences Initiated at Overweight by Cantor Fitzgerald. Cantor Fitzgerald analyst Pablo Zuanic initiated coverage of CV Sciences with an Overweight rating and $4.20 price target
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http://www.globenewswire.com/news-release/2019/10/24/1934941/0/en/Takeaways-from-ASHG-2019-in-Houston-Users-of-Bionano-s-Saphyr-System-Presented-Validation-Results-for-FSHD-Repeat-Expansion-Disorders-and-Digital-Cytogenetics-Among-a-Growing-List-.html
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2B patterns don't ever guarantee a winning trade ...
it's prudent to use stops to limit downside loss...It is also possible
to out guess the market as to how much loss you can take (holding during pull backs)
-- but --
if you're using P/A patterns & indicator patterns as your entry signals for day-trading
then you "must know your limitations" ahead of time...
The market can move faster than you can react to it.
Blue line 2B - they don't all run-up as nicely but be aware that they can.
Realistically an entry could have been had at 27073 when the fast MACD 1st turned up (the green bar).
This one was good for $100 with -0- draw down after the fill.
Other hints besides the price action pattern:
Can you see the histo divergence (its slope) between the the two price lows?
The stochastic was divergent at the 2B's left leg and again at its right.
2B Dragoms are fairly reliable price action reversals.
Their reliability goes up when there's confirmation from indicators.
These two short term charts are good examples of indicator conformation.
Compare the lows ---
The 23 tick on the left:
MACD EMAs and histogram lows are divergent to price lows
Stochastic is oversold and hooking up
The 17 tick on right:
MACD EMAs and histogram lows are divergent to price lows
Stochastic is oversold and hooking up
Stochastic lows are also divergent to price lows
2B Double Bottom with Divergent Indicators
All double bottoms are reversal patterns...the 2B has exact levels for both legs
Checking for divergence when you first spot the 2B price action pattern may
allow you to enter very close to the bottom...
Or you can wait for a confirming indicator pattern and still get a very good entry.
In this example the DIV 2B was confirmed by the stochastic slingshot.
You'll get a higher fill price waiting for confirmation
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