Spinning Tops Candlesticks Pattern and Dojis Crude Candlestick Pattern Setups

Spinning Tops Crude Candlestick Pattern Setups

Spinning tops candle-sticks pattern setup have a small body with long upper and lower shadows. These spinning top are referred to by this name of spinning top because they are similar to spinning tops on a matchstick.

The upper and lower shadows of the spinning tops are longer than the body. The example shown and illustrated below shows spinning tops pattern. You can look for pattern setup on your Meta Trader 4 Trading Platform charts. Examples illustrated below shows a screen shot to help traders when it comes to learning and understanding these formations.

How to read candle charts - Spinning Tops

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

Candle 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 Oil Trading 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 downward trend.

The neckline is:

• For an Upward Trend - The open of the previous candle that was drawn just before the spinning top.
• For a Downward 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 chart below when the crude 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 crude trade transaction.

Spinning Top Pattern on a Chart

Color of the 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 same opening and closing crude price. There are various types of doji candlestick setups that form on charts.

following example explain various patterns of the doji candlestick:

Long-legged doji candlestick has long upper and lower shadows with opening and closing crude price at the middle. When Long legged doji appears on a Oil Trading chart it shows indecision between crude traders, buyer and the sellers.

Shown Below is example screenshot image of the Long Legged

• Doji crude chart pattern

Cross Doji Crude Candle

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

This pattern pops up at market turning points and warns of a possible trend reversal in the trading market. Below is as examples of this chart formation

• Cross Doji Pattern

Inverted Cross Doji Oil Candle

Inverted cross doji candlesticks have a long upper shadow & a short lower shadow and the open & close is the same.

This reversal pattern pops up at market turning points and warns of a possible trend reversal in the market. Below is an example

• Inverted Cross doji

Analysis in Oil Trading - All doji candlesticks pattern setup 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 and at the close of the market the crude price closed unchanged at the same crude price as the opening crude price. This doji shows that the overall crude 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 crude price and closing crude price.