BLZ (Bluzelle) Dragon. Potential + 18-60%. Channel work 45%

アップデート済

After breaking through support for the horizontal channel in increments of about 45%, the price made an attempt to return back to the channel. An attempt to break through the resistance that used to be support turned out to be unsuccessful. Thus, forming a local maximum, which is the "hump" of the dragon. A local downtrend has formed. A break of the line of the local downtrend will mean confirmation of the “Dragon” figure.

The points (zones) for observation on which this or that movement depends I showed on the graph.
I think the algorithm of work here is extremely clear.

ENTRANCE.
1) Entrance on a breakthrough or pullback after breaking a trend resistance line (red resistance line).
2) Entrance from the bottom of the previous horizontal channel, but after the price has fixed in it.
3) The input is higher than the resistance of the previous channel when support is confirmed. This will mean a complete reversal of the trend in the upward.

TARGET.
Dragon target.
1) The first target is the hump of the Dragon + 18% (local maximum, support of the previous channel, which became resistance).
2) The Head of the Dragon (resistance of the previous channel) + 60%

Target on the channel. (provided that the price returns to the channel and consolidates in it).
1) Channel width - entrance from the bottom to the resistance + 35-45%.
2) Goals above the channel during a trend reversal if the price overcomes the channel resistance and fixes above it.

Stop loss
Under key support levels during your entry into the market.

The figure of the Dragon consists of the following components:
1) Head.
2) Ridge (downward line of the local trend).
3) 1 paw.
4) The hump.
5) 2 paws.
6) Tail (target area).

It is worth noting that the Dragon pattern is confirmed only when the price overcomes the downtrend line (“breaks the Dragon ridge”).
Before, it makes no sense to enter the market.

Read more about this figure in these educational idea.

EDUCATION. Dragon figure. Formation. Structure. Target.