- Last Kiss
- Big Shadow
- Wammies and Moolahs
- Kangaroo Tail
- Big Belt
- Trendy Kangaroo
The Big Shadow
It is a 2 Candlestick formation. A shorter candle followed
by a bigger one (the bigger the better) engulfing it in the opposite direction.
It should only be used at a resistance or support zone. It
is meant to bounce off away from the zone.
The engulfing candle should close very near to the opposing
high of the previous candle
It should also have a lot of space to the left, meaning that
it should be a new high/low with little activity in the zone.
Stop loss should
be placed few pips away from high/low
Entry point
should be placed with a trigger buy/sell few pips below the high/low of
engulfing candle. This is to ensure it is a higher probability trade, and not
one that simmers backwards again.
Limit stop should
be placed a few pips before the next resistant zone.
Wammies and Moolahs
Double Tops and Double Bottoms are one of the most common
patterns you will see in any charts. They are even more common than single
touches (like the Big Shadow).
But they often fail as well, so a more accurate version of
trade the 2 patterns are Wammies and Moolahs.
Basically, the improved version of a Double Bottoms is that
the tail of the first bottom must be lower than the tail of the 2nd
bottom. It shows that the market is more ready to move upwards and away in a
‘W’ shape.
Stop loss can be
set few pips below the tail of the 1st bottom.
Entry point can
be set at the high of the bullish candle after the 2nd bottom.
Limit Stop can be
placed before the next resistant zone.
There must be a gap of at least 6 Candlesticks apart,
otherwise it just seems like it is gearing for a breakout. The best whammies
are not quick touches, but rather a solid pattern of short rise and falling
back to touch the zone again.
Kangaroo tail
There are many names
for this, Nial Fuller calls them ‘pins’ (I think), Conrad Lim calls them ‘spinning
top’ or ‘black star’ (not sure). It seems like many traders do see this as a
very strong signal.
It has a tiny body, and a long tail.
The body of this Candlestick must be within the range of the
previous Candlestick.
It must have the greatest range of previous 10 Candles. If
there are long Candle bodies before the Tail, the momentum may be too strong to
cause a reversal.
This is also used with a zone. The Kangaroo tail is supposed
to poke deep into the zone before retracing back again, causing a small body.
And the trend should not be visiting the zone again anytime soon.
The tail must be at least 2/3 of the whole range of the
Candle, the longer the tail, the better.
Closing price is higher than opening, for bullish tail.
Stop loss can be
placed at 75% of the range towards the end of the tail, similar to what Nial
Fuller taught.
Trigger entry can
also be set above the tip of the trending Kangaroo Tail.
Limit stop placed
near the next resistant zone.
The chart should also be empty on the left of the signal. It
is because the tail is supposed to breakthrough a new zone before being
strongly rejected.
Big Belt
This occurs when the markets open after the weekend rest.
People will think over the weekend, and many will rush to place their trade
when the market re-opens on Monday.
Use of Daily Candlesticks produces more stable e results.
Opening price for bullish Big Belt is much lower than
previous low of Friday Candle.
The Opening and Closing price of the Big Belt is close to
the high and low of the Candle.
This Candle should print on a zone to be considered Big
Belt.
Big Belts with no rooms on the left also have low rate of
success.
Target Profit is
next zone
Stop loss is
below Big Belt low for bullish signal.
Buy stop at Big
Belt high.
Trendy Kangaroo
Together with Big Belt, this signal is also not very common.
Firstly, you need to determine the overall direction of the
currency pair. Sometimes the trend will take a break, and form a Consolidation
stage. Trendy Kangaroo is very similar to Kangaroo tail, just that Trendy
Kangaroo signals the end of the consolidation stage, and is ready to continue
moving in the direction of the overall trend again.
The consolidation period should have around 3-10 Candles,
and the tail should be protruding out of the consolidation. The longer the
tail, the better.
Unlike the Kangaroo Tail, there is no room to the left, due
to consolidation patterns.
To qualify as Trendy Kangaroo, the previous Candle must not
be another pin bar in the opposite direction. It will just signal a correction.
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