Spinning Tops Candle Pattern and Dojis Candlestick Patterns
Spinning Tops Candlestick Patterns
Spinning tops candlesticks setup pattern have small body with long upper and lower shadows. These spinning top are referred to by this name of spinning tops because they are similar to a spinning top on a matchstick.
The upper and 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 on your MT4 Software charts. The examples illustrated and shown and explained below shows a screenshot to help the Gold traders when it comes to learning & understanding these setups.
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(bulls) & sellers in the 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 and begin heading in the other direction. However, it is better to wait for additional confirmation trading signals that the direction of a market 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 color of the candle is white/blue.
At the bottom of a downwards trend a white/blue spinning top shows that a reversal is more likely than when the color is black/red.
This reversal signal gets confirmed when the next candlestick pattern setup formation that forms after the spinning tops candlestick closes below the neck line for a downwards trend reversal setup confirmation, and closes above the neck line 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 candlestick.
- For a Downward Trend - The open of the previous candlestick that was drawn and formed just before the spinning top candlestick
Shown Below is example of this Japanese charting techniques where this setup has formed & how to trade it. On the chart below when price moved above the neck line the reversal setup given by the spinning top candlestick was confirmed and this was a good point to exit the short sell trade.
Spinning Tops Pattern on Chart
Color of spinning tops candlestick formed is blue therefore meaning that a reversal was more likely as opposed to when if the colour had been red.
Doji Candlesticks Pattern
This is a pattern with the same opening and closing xauusd price. There are various types of doji candle patterns which form on charts.
following example describe different patterns of the doji candlestick:
Long-legged doji candlestick has long upper and lower shadows with opening & closing xauusd price at the middle. When the Long legged doji pops up on Gold chart it demonstrates indecision between the gold traders, buyer & the sellers(bears).
Shown Below is example screen-shot image screen shot 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 formation pops and shows up at market turning points and warns of a possible price trend direction reversal in the trading market. Below is as examples of this chart formation
- Cross Doji Candlestick Pattern
Inverted Cross Doji Candle 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 and shows up at market turning points and warns of a possible price trend direction reversal in the market. Below is an illustration
- Inverted Cross doji
Analysis in XAU/USD Trading - All doji candlesticks pattern setup formation show the indecision in the market this is because at the top of the market the buyers were in total control, at the bottom of the market the sellers were in control but none could gain control & at the close of the market the price closed at a level that was unchanged i.e. at the same price as the opening xauusd price for that trading period. This doji shows that the over-all price movement for that particular candlestick trading period was zero pips or just a minimum range of 1 and 3 pips. Reading these charts patterns require very small pip movement between the opening xauusd price and closing xauusd price.
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