Spinning Tops Candle Pattern and Dojis Candle Patterns
Spinning Tops Candle Patterns
Spinning tops candlesticks setup pattern have a small body with long upper & lower shadows. These spinning top are referred to by this name of spinning top because they are similar to a spinning top on a matchstick.
The upper & lower shadows of the spinning tops are longer than the body. The example shown & described below displays the spinning top pattern. You can look for the pattern in your MetaTrader 4 Software charts. The examples illustrated & explained below shows a screen-shot to help traders when it comes to learning & understanding these formations.
How to read candlestick charts - Spinning Tops
Colour of the spinning tops candlestick isn't very important, this formation show the indecision between the buyers & sellers in the trading market. When these patterns appear at the top of a market trend or at the bottom of the price trend it might that the price trend is coming to an end and it might soon reverse & begin heading in the other direction. However, it's better to wait for confirmation signals that the direction of a trend has reversed before trading the trading signal from this chart formation.
Candlestick Stick Reversal Patterns Formations on Charts
At the top of an upwards trend a black/red spinning top shows that a reversal is more likely than when colour of the candlestick is white/blue.
At the bottom of a downwards trend a white/blue spinning top illustrates that a reversal is more likely than when the colour is black/red.
This reversal signal is confirmed when the next candlestick pattern setup that forms after the spinning tops closes below the neck line for a downwards trend reversal setup confirmation, and closes above the neckline for a reversal setup in a down-wards trend.
The neck line is:
- For an Upwards Trend - The open of the previous candlestick that was drawn just before the spinning top.
- For a Downwards Gold Trend - The open of the previous candle that was drawn just before the spinning top
Shown Below is example of this Japanese charting techniques where this setup has formed and how to trade it. On the trading chart below when price moved above the neck-line the reversal setup given by the spinning top candle was confirmed and this was a good point to exit the short sell trade transaction.
Spinning Tops Pattern on a Trading Chart
Color of spinning tops formed is blue therefore meaning that a reversal was more likely as opposed to if the color had been red.
Doji Candles Pattern
This is a pattern with the same opening and closing xauusd price. There are various types of doji candle stick patterns which form on charts.
following example explain different patterns of the doji candle:
Long-legged doji candlestick has long upper & lower shadows with opening & closing xauusd price at the middle. When Long-legged doji pops up on Gold chart it demonstrates indecision between the traders, buyer and the sellers.
Shown Below is example screenshot image screenshot of the Long Legged
- Doji chart pattern
Cross Doji Gold Candle
Cross doji has a long lower shadow & a short upper shadow & the open and close of the day is the same.
This pattern setup pops up at market turning points & warns of a possible trend reversal in the trading market. Below is as examples of this chart formation
- Cross Doji Candlestick Pattern
Inverted Cross Doji Candlestick Pattern
Inverted cross doji candlesticks have a long upper shadow and a short lower shadow and the open & close is the same.
This reversal pattern pops up at market turning points & warns of a possible trend reversal in the trading market. Below is an example
- Inverted Cross doji
Analysis in XAUUSD Trading - All doji candlesticks pattern setup show indecision in the market this is because at the top of bulls were in total control, at the bottom the sellers were in control but none of them could gain control & at the close of the market the price closed unchanged at the same price as the opening xauusd price. This doji shows that the overall price movement for that particular day was zero pips or just a min range of 1 3 pips. Reading these charts patterns require very small pip movement between the opening xauusd price & closing xauusd price.
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