Spinning Tops Candles Pattern and Dojis Candlestick Setups

Spinning Tops Consolidation Candles Setup

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

The upper and lower shadows of the spinning tops are longer than the body. The example explained and displayed below shows the spinning tops pattern. You can look for setup in your MetaTrader 4 Platform charts. The example explained and shown below shows a screenshot to help traders when it comes to learning and understanding these formations.

How to read candlestick charts - Spinning Tops

The color of the spinning tops candlestick is not very important, this formation show the indecision between the buyers and sellers in the trading market. When these patterns appear at the top of a trend or at the bottom of the trend it might signal that the trend is coming to an end & it may soon reverse and 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 this chart formation.

Candle Reversal Patterns Formations on Charts

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

The neckline is:

• For an Upward Trend - The open of the previous candlestick that was drawn just before the spinning top.
• For a Downwards Trend - The open of the previous candlestick that was drawn just before the spinning top

Below is example of this Japanese charting techniques where this pattern has formed & how to trade it. On the 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 Top Pattern on a Chart

The color of spinning top formed is blue therefore meaning that a reversal was more likely as opposed to if the color had been red.

Doji Candlesticks Pattern

This is a pattern with same opening and closing price. There are various types of doji candle patterns that form on charts.

The following examples explain various patterns of the doji candle:

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

Below is example screen shot image of the Long Legged

• Doji chart pattern

Cross Doji Candle

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

This trading pattern appears at market turning points and warns of a possible trend reversal in the Silver. Shown Below is as example of this chart formation

• Cross Doji Pattern

Inverted Cross Doji Candle

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

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

• Inverted Cross doji

Technical Analysis in XAGUSD Trading - All doji candles pattern show indecision in the trading 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 trading market the price closed unchanged at the same price as the opening 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 price and closing price.