Trading The Kangaroo Tail Pattern

Coding the Kangaroo Tail Candlestick Pattern Scanner in TradingView

Candlestick patterns are a great addition to market analysis. Some may even consider them vital in research and trading. This article presents the Kangaroo Tail pattern and shows how to code a scanner in TradingView that detects it.

The Kangaroo Tail Pattern

Candlestick charts are among the most famous ways to analyze the time series visually. They contain more information than a simple line chart and have more visual interpretability than bar charts.

The Kangaroo Tail pattern (as presented by Alex Nekritin and Walter Peters) is a one-candlestick reversal configuration that has roots in classic candlestick patterns (namely the hammer and Doji patterns), therefore, it may resemble them but with a few extra conditions to filter false signals.

The bullish Kangaroo Tail is composed of a very long wick where the open and close price are in the upper two thirds of the candle’s range (the high minus the low). Similarly, it must be in a down trend with a range that is superior to the prior candlesticks (to avoid what is known as a runaway). Some minor conditions are in the code.