Freelance service at MQL5.com: Dragon pattern

Job finished

Execution time 7 minutes

Feedback from employee

Very wonderful client and patient

Description

Specification

Introduction

A dragon pattern is a “W” or “M” shape reversal pattern which resembles a Chinese dragon. This pattern indicates that in the near future, the market is about to face a price reversal. This reversal is either bullish or bearish. The bullish and bearish nature of the dragon depends on the shape of the dragon.

This blog will address both types of dragons concerning the trading strategy.

Components of a dragon pattern

There are four important components of a dragon.

Head
Feet
Hump
Tail

1. Head

The head of the dragon is the begging of the dragon pattern. It indicates the prior trend. In the case of a bullish dragon, the prior trend is bearish. On the other hand, a bearish dragon forms above a prior bullish trend.

2. Feet

There are two feet of the dragon. The positioning of the feet is so the second foot is a little below the first foot. If the second foot is bigger in size, the reversal is usually greater.

In the case of a bearish dragon, feet are formed in the inverted position as the dragon’s body is reversed.

3. Hump

It is a slight rise in the prices compared to the feet of the dragon. It is located between two feet but at a higher level in the case of a bullish dragon. In the case of a bearish dragon, the hump is below the feet.

4. Tail

It is the last point of the Dragon’s body. It is the point where a breakout in the market takes place. In the case of a bullish dragon, the price begins to rise after the formation of a tail. The market begins to take new highs, and the bullish sentiment takes place. It is the time when the number of buyers begins to take over the market.

In the case of a bearish dragon, a bearish breakout takes place after the tail of the dragon. In this case, the number of sellers dominates a market and prices begin to face a fall.

Types of Dragons

Two types of dragons appear on a trading chart. Both these types behave oppositely regarding a market reversal. The types of dragons are,

Bullish dragon pattern
Bearish dragon pattern

The comparison between these two types is given below in the table.

Features	Bullish Dragon	Bearish Dragon
shape	It resembles the letter “W.”	It resembles the letter “M.”
Prior trend	bearish	bullish
Market breakout	Bullish breakout	Bearish breakout
Forecast	The number of buyers begins to take over the market.	Bears begin to dominate the market as the number of sellers increases.

Trading strategy

As you are aware now that there are two types of dragon setups. So, we need to form two types of trading strategies.

Trading strategy for a bullish setup

The trading strategy for a bullish setup is divided into the following steps.

Entry
Take profit
Risk management

Entry

After the formation of the second foot of the dragon, the bullish dragon is confirmed. The best time to enter a trade is once the bullish sentiment of the market begins to appear.

To find the best entry point, draw a trendline that passes through the head, hump, and the point after the second foot. This point forms an ideal entry point. Later to this entry point, the prices take a slight dip, and the bullish break out takes place.

Take profit

Two options exist for taking the profit if dealing with a bullish dragon pattern. Suppose you are more interested in short trading. you can take a profit just above the tail of the dragon, equivalent to the head or equivalent to the Hump, when prices begin to rise.

In a long trade, you have to wait for a breakout in the prices. Usually, the prices take a spike after a bullish dragon appears. The more patient and professional traders wait for the full spike to take a significant profit.

Risk management

Risk management is a vital step when trading a bullish reversal dragon. I recommend you place the stop loss below the second foot of the dragon. It will significantly protect your potential losses if the dragon doesn’t behave as usual and the price reverses.

Draw the dragon pattern with proper Fibonacci levels:

Hump near 38-50% of AB. Input Parameter : Hump Ratio = 38.

Second leg can be 68-100% of AB. Input parameter: Second Leg Ratio = 68%

Both are configuration.

Input parameter : Multi-Target = true

Close 25% of the position at Target 1

Close 25% of the position at Target 2

Close 50% of the position at Target 3

Input parameter : Multi-Target = false

Close 100% of the position at Target 3

MT4 indicator should draw the dragon pattern for Symbol and time frame like below

Note: Exact same information has to be displayed and lines.

Alert:

When symbol found, alert with symbol name, time frame, entry price, stoploss price and target price.

When entry happened, triggered the alert.

When stop loss hit, triggered the alert with symbol name and timeframe.

When target hit, triggered the alert with symbol name and timeframe.

Input Parameter:

enable timeframe: 1M | 5M | 15M | 1HR

Note:

Should not get REPAINTED, meaning if the pattern is identified for a ratio and its broken then we should not change that.
Draw the pattern only when the trendline broken.
If multiple time frame enabled draw those and track also.
Raise the alert specific to the pattern on each level.

Files:

ZIP

DRAGON_TRADING_PATTERN.zip

1.6 Mb

Responded

Rating

Projects

Arbitration

Overdue

Free

Similar orders

Project: Convert TradingView Indicator to MT4 We are looking for an experienced MQL4 developer to convert a high-quality TradingView indicator into a MetaTrader 4 (MT4) indicator. Indicator Details: The TradingView indicator generates buy and sell arrows for trade entries. It is non-repainting, has no lag, and is highly reliable. Arrows appear only after the candle closes and remain visible permanently. Requirements

Hi, I need NinjaTrader 8 Strategy Analyzer backtests on two of my strategies, each over 1 year AND 3 years of data. Please quote the full job. Common settings: NT8 Strategy Analyzer, MCL (Micro WTI Crude Oil) continuous front-month contract (MCL ##-##), 5-minute bars, 1yr + 3yr of the most recent data, $2.50 round-turn commission per contract. Deliverables per run: full Strategy Analyzer summary (net profit, profit

Project Overview: I am looking for an experienced MQL5 developer to convert a suite of 6 custom MT4 indicators into native, fully optimized MQL5 (.mq5) indicators. I will provide the uncompiled .mq4 source files for all seven tools upon hiring. The indicators must compile cleanly in MetaEditor for MT5 without errors or critical warnings, function correctly together on a multi-timeframe chart setup (specifically

Custom MT5 Expert Advisor (EA) Development | MQL5 Automation Turn Your Trading Strategy into a Powerful Automated Trading System! Are you looking for a professional MT5 Expert Advisor developer to automate your trading strategy? I specialize in developing custom MetaTrader 5 (MT5) Expert Advisors and indicators using MQL5 , tailored to your trading rules, risk management preferences, and trading goals. Whether you

I am looking for an experienced MQL5 developer or development team to build a scalable Telegram-to-MT5 copy trading system. The main purpose of the system is to monitor trading signals from my Telegram channel and automatically execute those signals on connected client MT5 accounts. Core Requirements Receive and parse trading signals from Telegram Automatically execute trades on connected MT5 accounts Support more

Hello, I want to develop a custom MT5 Expert Advisor (EA) for XAUUSD Gold. IMPORTANT: I want a proper rule-based automated trading EA, NOT a martingale, grid or guaranteed-profit bot. 1. MARKET & TIMEFRAME - Platform: MT5 - Symbol: XAUUSD only - Main trend timeframe: M15 - Entry timeframe: M5 - Must support broker suffixes such as XAUUSDm, XAUUSD., etc. 2. TREND RULE BUY trend: - M15 price above EMA 50 - EMA 50 above

I need a TradingView Pine Script (v6) indicator that gives BUY and SELL signals in real time on the live chart. MAIN REQUIREMENT – NO REPAINTING: 1. Signals must appear only when the candle closes (barstate.isconfirmed). Example: on 1-min chart, signal for the 10:35 candle must appear at 10:36 and never disappear or move. 2. Signals on historical bars must look exactly the same as they looked live. 3. No lookahead

Description I am looking for a highly skilled MQL5 Developer & Trader with strong experience in EA optimization, stress testing, and forward validation. The EA is already coded and running. What I need now is: 1.Simple code editing, code adjustment/upgrading and code tamplates inserting, 2.Parameter Optimization & Re-Validation – Find the best stable settings for XAUUSD (not overfitted). 3.Robustness / Stress Testing

المطلوب موشر لتداول الذهب مجرب وقوية يعطي اشاره قوية فقط مع وقف خساره ومختبر ومجرب في حال الموافقه علي لموشر بعد التجربه لمدة ٣ ايام يتم الشراء دايم مبلغ ٢٠٠ دولار

yo i have a strategy i would really like to turn into a signal bot basically please this is very technical and serious to me the strategy needs more time 1 time frame and the bot most be 100% accurate

Project information

Budget

75+ USD

Specification quality		5.0
Result check quality		5.0
Availability and communication skills		5.0