Dragon Scale

Indicator Visualization

The DRAGON SCALE™ indicator displays several visual elements on the chart:

1. Scale Zone – Displayed as purple areas (accumulation zones) and red areas (distribution zones) surrounding the pivot level.

2. Lifebeat Signal™ – Appears as an arrow below the candle when the price enters a critical zone. The color of the arrow indicates the direction (green for bullish, red for bearish, yellow for neutral).

3. Entry Countdown – Appears as an arrow above the candle when the price enters the critical zone. The arrow color changes based on the countdown.

4. Exit Fade/Pulse – Appears as an arrow when the price exits the critical zone, providing a signal to exit the position.

5. Candle Override Visual – The candle changes color according to market conditions while within the critical zone.

How to Read the Signals

Critical Zone

The critical zone is the area around the pivot level (±20% of the zone size). Signals are only valid when the price is within this critical zone.

Entry Signals

1. Wait for the price to enter the critical zone (indicated by the appearance of the Lifebeat Signal™).

2. Observe the Entry Countdown, which counts down the entry period.

3. Enter in the direction indicated by the Lifebeat Signal™ color (green to buy, red to sell).

Exit Signals

1. Exit the position when the Exit Fade/Pulse appears (when the price exits the critical zone).

2. The color of the Exit Fade/Pulse shows the direction of the move after leaving the critical zone.

Usage Tips

1. Optimal Timeframe: This indicator works on all timeframes but performs best on H1 and below for intraday trading.

2. Combining with Other Indicators: Use it alongside trend indicators to confirm long-term directional bias.

3. Zone Configuration: Adjust the Zone Type and size parameters based on the volatility of the traded instrument.

4. Risk Management: Always use a stop loss outside the critical zone to limit risk.

Example Trading Strategies

Bounce Strategy

1. Wait for the price to enter the critical zone.

2. Confirm with a Lifebeat Signal™ showing a reversal direction.

3. Enter after the Entry Countdown completes.

4. Exit when the Exit Fade/Pulse appears or when reaching the profit target.

Breakout Strategy

1. Wait for the price to enter and stay in the critical zone for several candles.

2. Enter when the price starts to move out of the critical zone with strong momentum.

3. Confirm with a change in candle color (Candle Override Visual).

4. Exit when momentum weakens or when the Exit Fade/Pulse appears.