Spinning Tops Candle Sticks Pattern and Dojis Candle Patterns

Spinning Tops Candle Patterns

Spinning tops candles 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 MT4 Platform charts. The examples illustrated & explained below shows a screen-shot to help traders when it comes to learning & understanding these formations.

How to read candle charts - Spinning Tops

Color of the spinning top candlestick is not very important, this formation show the indecision between the buyers & sellers in the trading market. When these chart patterns appear at the top of a trend or at the bottom of the trend it may trading signal that the trend is coming to an end & it might soon reverse and start going the other direction. However, it is better to wait for confirmation trading signals that the direction of a trend has reversed before trading the trading signal from this chart formation.

Candlestick Stick Reversal Patterns Formations on Trading Charts

At the top of an upward 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 downward trend a white/blue spinning top shows that a reversal is more likely than when the color is black/red.

This reversal signal is confirmed when the next candlestick pattern that forms after the spinning tops closes below the neckline for a downward trend reversal signal confirmation, and closes above the neckline for a reversal signal in a down-wards trend.

The neckline is:

• For an Upward Trend - The open of the previous candle 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 pattern has formed & how to trade it. On the trading chart below when the price moved above the neckline the reversal signal given by the spinning top candlestick was confirmed and this was a good point to exit the short sell trade transaction.

Spinning Tops Pattern on a 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 that form on charts.

following example explain various patterns of the doji candle:

Long-legged doji candlestick has long upper & lower shadows with opening & closing xauusd price at the middle. When the Long legged doji appears on a Gold chart it demonstrates indecision between traders, buyer & the sellers.

Shown Below is example screen shot image of the Long Legged

• Doji chart pattern

Cross Doji Gold Candle

Cross doji has a long lower shadow & a short upper shadow and the open and close of the day is the same.

This pattern 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 Pattern

Inverted Cross Doji Candle-stick Pattern

Inverted cross doji candlesticks have a long upper shadow & a short lower shadow and the open and 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 Gold Trading - All doji candles pattern show indecision in the market this is because at the top of the buyers were in 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 day was zero pips or just a minimum range of 1-3 pips. Reading these charts patterns require very small pip movement between the opening xauusd price & closing xauusd price.