Kangaroo Tails

[Creessydeld]

Hi Guys,

I am a beginner to the trading endeavour so I decided to start by buying a good book and study it. I decided to put my bet on "Come into my trading room" - Elder.

Now I have come to a part where he starts describing Kangaroo tails; I quote "A tail is a one-day spike in the direction of a trend, followed by a reversal. It takes a minimum of three bars to create a tail - relatively narrow bars in the beginning and at the end,with an extremely wide bar in the middle. That middle bar is the tail, but you won't know for sure until the following day, when a bar has sharply narrowed back at the base, letting the tail hang out".

My query is: To what type of chart is he referring? Is it some kind of bar chart?? What information is represented in the width of a 'bar chart'??

Thanks for your time guys, have a good day.

[Cryperhycle]

http://onlinetradersforum.com/attachments/kangarootailreversalpattern-jpg.23253/

I copied this from a google image...

[csqpltmm32]

Thanks for your reply goodtogo.

I can see the kangaroo tails in that image and many others I had already viewed. The query actually was on the kind of chart he's talking about; it must have bars with varying width. I don't see any varying widths in the candle chart you have copied.

thanks for your time

[cultwydd62]

The "width" that he is referring to is the width from the bottom to the top of the bar (probably more easily thought of as "height"). He is using OLHC (Open High Low Close) charts. The chart above is a Candlestick chart. If Elder were looking at a Candlestick chart, he would have called that pattern a Morning Star, rather than a Kangaroo Tail http://onlinetradersforum.com/styles/default/xenforo/clear.png

I'm a fan of candlestick charts. I think you can get a lot more information faster with that visual im