Tongdaxin kangaroo tail shape stock selection formula, also known as finger line

In the book "Trading for a Living", the author Elder mentioned the "kangaroo tail" pattern (also known as "finger line"), which is a chart signal recognized by the author, which is very attractive and easy to identify.

The kangaroo moves forward by its tail, and its jumping direction is opposite to its tail direction. The shape of the kangaroo tail is just like the movement mode of the kangaroo, which can be used to judge the direction of the price. The kangaroo tail pattern does not predict the exact target of price action, but it usually lasts for a few days and presents a trading opportunity.

The kangaroo tail pattern consists of a relatively long K-line and ordinary K-lines distributed on both sides. The long K-line breaks through the tightly intertwined shock range. The height of the long candlestick is more than twice the height of the ordinary candlestick. A kangaroo tail with an upward tail is a signal of peaking, reflecting the failure of the bulls to push up prices; while a downward kangaroo tail is a signal of bottoming, reflecting the failure of the bears to raid. To put it simply, it is actually a form of false breakthrough.

1. The indicator formula of the main chart of the kangaroo tail pattern

HL:=HL;{K line height}

CO:=ABS(CO);{K line entity}

DSW:=HL>MA(HL,20)*2 AND CO/HL<0.6; {kangaroo tail}

A1:=REF(L,1)<MIN(L,REF(L,2)) AND REF(H,1)<MIN(H,REF(H,2)); all low}

A2:=REF(DSW,1);{Yesterday was kangaroo tail}

A3:=HL<MA(HL,20)*2; {Limit today's K-line height}

CXD:=L=LLV(L,20);{20 day new low}

T:=BARSLAST(CXD);{The number of cycles from the last 20-day low to the current one}

LL:=REF(L,T);{The lowest price on the day of the new low on the 20th}

XC:=CROSS(REF(LL,1),L);{cross LL}

A4:=REF(XC,1);{Yesterday's kangaroo wears LL under its tail}

A5:=C>REF(LL,2); {Today's closing price is back above LL}

A6:=REF(T,2)>2;{limit the number of cycles of T}

XG:=A1 AND A2 AND A3 AND A4 AND A5 AND A6;

STICKLINE(XG,H,L,0,0),COLORYELLOW;

STICKLINE(XG,C,O,3,0),COLORYELLOW;

DRAWICON(XG,L,1);

2. Stock selection formula for kangaroo tail

HL:=HL;

CO:=ABS(CO);

DSW:=HL>MA(HL,20)*2 AND CO/HL<0.6;

A1:=REF(L,1)<MIN(L,REF(L,2)) AND REF(H,1)<MIN(H,REF(H,2));

A2:=REF(DSW,1);

A3:=HL<MA(HL,20)*2;

CXD:=L=LLV(L,20);

T:=BARSLAST(CXD);

LL:=REF(L,T);

XC:=CROSS(REF(LL,1),L);

A4:=REF(XC,1);

A5:=C>REF(LL,2);

A6:=REF(T,2)>2;

XG:A1 AND A2 AND A3 AND A4 AND A5 AND A6;

Finally, let me explain that this article briefly introduces the kangaroo tail pattern, but does not introduce the transaction details and stop loss settings of this pattern. You can read "Trading for a Living" to learn more. The description of the shape of the kangaroo tail in the book is relatively simple and not too detailed, so the description of the shape by the formula in this article may not be accurate. The author Elder also has a description of the kangaroo tail in his other book "Into My Trading Room", which can be used for comprehensive reference.

Friendly reminder: This article is only for learning and exchanging technical indicator formulas, and does not constitute any investment advice. Investment is risky, and you need to be cautious when entering the market.