 In astrology, the Moon's Nodes (the Dragon's Head and Tail) are not planets in the strict astronomical sense, but rather sensitive points on the ecliptic, where the Moon crosses from north to south latitude and vice versa. The body of the "energy dragon" is the fourth-dimensional path of the Moon by declination, as she weaves her web around the earth.
The nodes are commonly known as the Dragon's Head (Caput Draconis in Latin), the North Node, and Dragon's Tail (Cauda Draconis), the South Node, although in Indian Astrology they are known as Rahu and Ketu. The Dragon's Head, a "shadow planet" exalted in Gemini, is considered benefic (good), whilst the Dragon's Tail, exalted in Sagittarius, is considered malefic (evil) in influence. Their motion is normally retrograde at the rate of roughly one degree every 19 days (compare the 19 year cycle of lunation); periods of direct motion are therefore considered unfortunate.
The placement of the Nodes is important, because it illustrates a relationship between the Moon, the Earth and the Sun (eclipses can be calculated by the movement of the nodal axis). The significance of the Nodes has been widely underestimated in Western Astrology over the past fifty years or so, due to some extent to the rise of "psychological" or "humanistic" interpretative paradigms that have devalued many traditional features of the astrologer's toolkit. However, traditional Western astrology along with Vedic, or Indian astrology, places the Nodes on the same critical level of importance as the Sun, Moon and other visible planets. There is no doubt that this elevation of the Nodes to planetary status is justified, for experience shows that the movement of the Nodes has a very significant effect on human life and on the destinies of all beings who dwell on the surface of the Earth. The Dragon's Head (North Node): Aspects to the North Node concern or affect relationships to prevailing trends, attitudes and opportunities. The Dragon's Head represents your karmic objectives in this lifetime. It points the way towards soul growth and evolution. The sign holding your Dragon's Head reveals the flavour of your karma in this lifetime, while its house placement shows the area of life in which you need to develop, or become conscious of this karma. Positive aspects to the Dragon's Head are generally favourable from the benefics (Venus and Jupiter), Sun, Moon and Mercury, whilst sextile or trine from Mars, Uranus, Saturn, Neptune and Pluto also have beneficial effects. Square and opposition from the benefics and conjunction, square and opposition from the malefics are unfortunate, according to the matters signified by house and planet afflicted. The Dragon's Tail (South Node): Aspects to the Dragon's Tail display the results of innate unconscious tendencies and karmic patterns as they emerge in the life. They tend to be separative and destructive. Any aspect to the South Node from any planet is unfortunate for matters to do with the house and planet activated thereby. Past life hangovers are represented by the position and aspects of the Dragon's Tail. The position of the Dragon's Tail is generally indicative of past life connections or commitments in a relationship analysis. Aspects thereto are also most interesting, especially if a pre-natal eclipse falls there, either natally or in conjunction with a progression or major transit. The best way to understand the astrological nature of the Nodes might be to envisage them as bubbling pools of karmic energy. These have a massive potency, which is associated with powerful events and feelings whenever they are activated by progressions or transits. Because the nodes are pools of karma associated primarily with the house in which they are located, the related effects are deep and often seem almost inevitable. It is not for nothing that they are called the Dragon's Head and Tail. 
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