Whipping the Market With Kangaroo Tails

Presenting a Simple Trading Strategy

This article presents two exotic indicators, the Kangaroo tail candlestick pattern and the Fibonacci volatility bands. It combines them both for a trading strategy in TradingView.

The Kangaroo Tail Pattern

The Kangaroo tail candlestick pattern is a price action trading signal. It’s a reversal pattern that often indicates a potential change in market direction.

The candlestick has a very long tail (wick), which is at least two to three times the length of the body. The body of the candlestick is small in comparison to the tail. If the tail is pointing down, there is little to no upper shadow (wick above the body), and vice versa.

• Bullish pattern: This appears at the bottom of a downtrend. The long tail points downwards, showing rejection of lower prices. The small body is near the top of the candle.

• Bearish pattern: This forms at the top of an uptrend. The long tail points upwards, indicating rejection of higher prices. The small body is near the bottom of the candle.