Spinning Tops Candles Pattern and Dojis Stocks Candlestick Patterns

Spinning Tops Stocks Candle Patterns

Spinning tops candle-sticks pattern have a small body with long upper & lower shadows. These spinning tops are referred to by this name of spinning top 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 illustrated and explained below shows the spinning top pattern. You can look for the pattern in your MT4 Stock Trading Platform charts. Example illustrated and described below shows a screen-shot to help traders when it comes to learning and understanding these formations.

How to read candle stocks charts - Spinning Tops

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

Candle Reversal Patterns Formations on Trading Charts

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

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

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

The neckline is:

• For an Upwards Stock Trend - The open of the previous candle that was drawn just before the spinning top.
• For a Downward Stock Trend - The open of the previous candle that was drawn just before the spinning top

Below is example of this Japanese charting techniques where this pattern has formed and how to trade it. On the trading chart below when the stocks price moved above the neckline the reversal stock signal given by the spinning top candlestick was confirmed and this was a good point to exit the short sell stock trade.

Spinning Top Pattern on a Chart

The 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 same opening & closing stocks price. There are various types of doji candlestick patterns that form on charts.

The following examples illustrate various patterns of the doji candlestick:

Long-legged doji candle has long upper & lower shadows with opening & closing stock trading price at the middle. When the Long-legged doji pops up on a Stock chart it indicates indecision between stocks traders, the buyer and the sellers.

Below is example screen-shot image of the Long Legged

• Doji stocks chart pattern

Cross Doji Stock Trading Candlestick

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

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

• Cross Doji Pattern

Inverted Cross Doji Stocks Trading Candlestick

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

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

• Inverted Cross doji

Technical Analysis in Stocks Trading - All doji candlesticks pattern show indecision in the stocks 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 stocks market the stocks price closed unchanged at the same stocks price as the opening stock price. This doji shows that the overall stocks 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 stocks price & closing stock trading price.