Simultaneously Figures Inverted Dragon and Dragon

On the graph you can see how one figure goes into another and all goals are fully fulfilled.
The figure of the technical analysis "Inverted Dragon" all the description, lines, goals on the graph are yellow.
The figure of the technical analysis "Dragon" all the description, lines, goals on the chart are blue.

In trading such figures, the most important thing is the trend lines ("Dragon Ridge"). In this example, "Inverted Dragon" has an upward trending white color. And the figure "Dragon" has a downtrend in purple.
Also, when trading and identifying a figure, zones of a trend break are very important, in this example they are indicated by red circles.
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About the figure "Dragon" I described in great detail in the article: Figure Dragon. Formation. Structure. Goals.
Read more in this tutorial.

In this article I want to describe the mirror image of the “Dragon” figure - this is “Inverted Dragon”.

The “Inverted Dragon” / “Dragon” figures got their name due to some resemblance to a fairy-tale character: he also has a head, two legs, a tail and a hump on his back.

The figure "Inverted Dragon" consists of 5 parts, formed in the following order:
1) Dragon Head - the minimum price of all parts of the figure;
2) The first paw of the Dragon is the local maximum price;
3) The Hump of the Dragon - the minimum price between its paws;
4) The second paw of the Dragon is another maximum located slightly below / above the first paw, in rare cases equal to the maximum of the first paw;
5) Dragon Tail is the target price that should bring you revenue.
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“Inverted Dragon” is a reversal pattern that indicates almost the very beginning of a trend reversal. The formation of the “Inverted Dragon” tells the trader that the mood in the market may change soon and the current trend will unfold.
The figure is a more modified version of the “Double Peak” figure, while signaling a change in the bull market to the bear market. But there is one fundamental difference from the “Double Peaks” figure.
A prerequisite for the formation of the Dragon is a trend line drawn through the head and hump of this model ("Dragon Ridge").
It is important that this trend line is clearly visible on the chart. The trend line plays an almost decisive role in the figure.
“Inverted Dragon” and “Dragon” with the correct identification and understanding of the work, you can get good profit on various time frames.
The “Inverted Dragon” shape and its mirror image “Dragon” are very similar to the “Double Peak” and “Double Bottom” figures, however, they also have significant differences, which will be described below.
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Stages of the formation of the figure.
The "Inverted Dragon" is formed on an uptrend. Its formation begins with the "Head". It represents a local minimum. After the formation of the "Head", the market continues an upward movement, as a result of which two maximums "1 paw" and "2 paws" successively appear on the price chart. (Two peaks).
The local maximum from the first test of the resistance line at the upper border of the figure forms "1 Dragon's paw." After repeated testing of the same level of resistance, "2 paws of the Dragon" is formed. The difference between the maxima of the first and second "paws" can be from a few percent to 5-10%.
Between the paws of the "Dragon" should be formed a hollow (bottom, local minimum - correction from the upward movement), which is called the "Hump of the Dragon." At its core, the formation of the “Head – Lap – Hump – Lap” ligament is a “Double Peak” reversal pattern.
The close of the formation of the “Inverted Dragon” figure is indicated by the closing of the price below the “Dragon Range” - a trend line (support) drawn along its points from the “Head” and “Hump”. This will be a signal of a trend reversal. It is advisable to wait until the candle, after crossing the line, closes below the "Hump" level (the price has fixed).
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Shape shaping and volume change.
As prices move from head to forepaws, volumes rise, confirming the uptrend that existed at that time. But already with the formation of the hump of the dragon, everything changes. Volumes begin to grow in the direction of the downtrend and decrease in the direction of the upward. This indicates an imminent change in trend.

Finally, an additional confirmation signal can be an increase in the trading volume, which should increase during the price breakthrough of the uptrend of the “Inverted Dragon” figure (support). This is a breakdown of the trend line that connects the points of the “Dragon Head” and “Dragon Hump”. And then the price drop in the direction of the dragon's tail is accompanied by a rapid surge in volume, which finally confirms the trend reversal.

True price movements are always accompanied by an increase in the volume indicator. This means that if volumes grow in the direction of the dragon's tail (the direction of the future trend) and decrease in the direction of the previous trend, then the future trend is definitely gaining strength and the “Inverted Dragon” figure is true.
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Setting targets when working with a figure.

There are two options for entering a deal:
1) Entrance when breaking the line of the "Dragon Range" of the uptrend (line- "Head" - "Hump").
2) Entrance when breaking through the level of "Hump of the Dragon.
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First target.
To be at the level of the last minimum - the level of "Hump".

The second target.
To be at the very minimum value of the figure - the level of "Head".

The third target.
In rare cases, this is the entire length of growth from the “Head” to the very top “Paw” - then from the point of breakdown of the ascending trend line (“Dragon Ridge”), we establish the entire length of the previous growth — this will be the last target of the “Dragon Tail”.
In this example, the graph shows only taking 2 goals. Only in 10% of cases, 3 is the target relevant, for this you need a very strong trend movement.
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There should be a strategy and plan. At the same time, your strategy and plan should be plastic from market situations.