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Naked Forex: High-Probability Techniques for Trading without Indicators by Walter Peters, Alex Nekritin

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CHAPTER 10

The Trendy Kangaroo

Those who try to lead the people can only do so by following the mob.

—Oscar Wilde

At times the market will take off in a strong trend. These trends make for pretty-looking charts. The market might be marching upward, with very few pauses along the way, or the market could be in a freefall, stopping here and there on the way to lower lows. Any trader who scrolls back through the charts will notice these exciting times and may wish for a method of capturing easy profits from these trending markets. The trendy kangaroo is one such method. This is a way for you, the naked trader, to identify the trend and capture healthy profits from a trending market.

WHAT IS A TRENDY KANGAROO?

The trendy kangaroo is a special case of the kangaroo-tail trade. This is a specific method for jumping on trends. This price pattern does involve a kangaroo tail, but the overall set-up in relation to the nearby candlesticks is very different from the standard kangaroo tail. In fact, the defining feature of the trendy kangaroo is that it must print during a trending market. Obviously it does not matter if the market is trending upward or downward; the key characteristic here is that the market is trending.

It seems nearly every trader has a different definition of a trending market. The large majority of technical indicators are used to identify a trending versus nontrending market. Naturally, as a naked trader, you have no need for indicators, even when you are determining ...

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