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A team can contain 5 dragons. Two dragons of the same species and element cannot participate together.
The Dragon Book classifies all dragons into one of four types: Attack Type, Recovery Type, Defense Type, and Support Type.
A good basic team structure for most content is 2 attackers, 1 healer, 1 mana battery, and 1 support.
The primary role of Attack Type dragons is to deal damage during battle.
In dungeons and Ancient Tower, you want one single-target attacker that deals high damage, and one multi-target attacker to clear minions.
In Colosseum, you may wish to have only one attacker, and the other dragons to provide support to it. Or you may have two attackers who synergise well, such as two attackers that have the ability to stun their opponents.
Recovery Type dragons are those that have the ability to heal HP. Check the skills of your Recovery Type dragon to find out what stat their heals are based on, so that you can boost that stat!
Most teams will only require 1 healer, but there are times when you will wish for 2.
The best Recovery Type will provide a stat boost or some other beneficial effect to their teammates when they heal them.
Some Recovery Type dragons can only heal 2 targets. A 2-target healer usually cannot operate alone and must be paired with another healer.
Recovery Type dragons such as Aphrodite heal only one target. This is not ideal, as it uses up a lot of mana, and it becomes difficult to sustain your other dragons.
Defense Type dragons have a high DEF stat and are designed to take the front position and soak up damage to protect their weaker teammates.
Unfortunately, most Defense Type dragons are unusable, or too niche for general use. However, Defense Type dragons can still have a place if you find that you require their skillset. Lightning God dragon is one of the best Defense Type dragons due to their high DEF, great damage, and useful skills.
You might also need one in Clan Dungeon when the Clan boss has reached high levels, and you need something to tank for your team.
Most teams will not need a Defense Type dragon, however.
These category includes a wide variety of useful skills such as reducing the cooldown of drag skills, providing mana, buffing the team, debuffing the opponent, and more.
Mana support is indispensable for every team. Before you can access Meditation runes from the Ancient Ruins, (and even after, in most cases), you will need a dedicated mana battery such as Lambgon or Cupid. These dragons increase the speed at which you regain mana every time a dragon uses a drag skill.
Dragons such as Bagma and Light Alien reduce the time you need to wait in between dragons using their drag skills, depending on the Mana Cost of each dragon's drag skill. Cooldown reduction is always useful, no matter the content.
There are also dragons that can boost its teammate's stats or decrease the opponent's stats during battle. Buffing your dragons is always useful, whereas debuffing the opponent is more for Colosseum than PvE content, though there are PvE content where debuffs such as reduced Recovery Rate can be useful.
Think about your team structure and what you think it lacks to decide what support dragons to use!
The most important thing to know about formation is that dragons at the front position sustain the most damage.
In Adventure mode and dungeons, the Formation you use provides a stat boost. You can enhance the stat boost with Gold.
This makes Scattered formation, with its ATK boost, the most generally useful formation.
You may wish to experiment with different formations in Colosseum, however.
For example, a popular technique is to use the Cross formation and placing the weakest unit at the top.
In this team setting, drag skills that target 3 dragons in a vertical line will be unable to reach Light Clown dragon.
However, Earth Smart is in a vulnerable position in the centre, as it will the receive the brunt of most attacks. That is why a bulky dragon is suitable to be placed in the centre.
Other considerations you may wish to take into account are, placing two healers in different positions so that it is unlikely they will be taken out at the same time, or placing a weak unit in a position where it will always receive heals from your Recovery Type dragons.
For Adventure and dungeons, you will likely wish to stick to the Scattered Formation. But in some areas, there are different considerations you may have to take into account.
In this party, Pharaoh will sustain more damage than Cupid, even though they are both in the front. Thus, when using a scattered formation in your Ancient Ruins top lane team, place your bulkiest unit in the top-right corner, followed by your next bulkiest unit in the bottom-right corner.
The bottom lane team is the opposite to the top lane: the bottom-right corner sustains more damage, which is Water Wonder in this case. Note, however, that in this case, which position takes more damage is insignificant, as both dragons at the front have the ability to Zombie, and thus the luxury of taking damage without worry.
In these places, the top right corner sustains more damage, where Lightning God dragon is in this image.
You can very easily observe that the Incarnation of Sins monster attacks the bottom-right corner, where Water Wonder is in this image, more often than it does the top-right corner. It will target Fire Totem if Water Wonder is knocked out.
Here, Light Pharaoh will sustain more damage than Dark Venezie. Note that, as you will probably expect your whole team to be wiped out within the timer in Clan Dungeon, you do not want your healer to be wiped out first. Instead, Pharaoh which only lends ATK buff support, will die first, allowing the rest of the team to still function to some extent without it.