How Can Spinning Tops Candle-sticks and Doji Patterns on Crypto Currency Charts Be Traded?
Spinning Tops Candle Patterns
Spinning tops candlesticks pattern formation have small body with long upper and lower shadows. These spinning tops are referred to by this term of spinning tops because they are similar to spinning tops on a matchstick.
The upper & lower shadows of the spinning tops are longer than the body. The example illustrated below illustrates the spinning tops pattern. You can look for the pattern in your ==22==MetaTrader--4 BTCUSD Platform charts. The example illustrated below shows a screen-shot to help BTCUSD traders when it comes to learning and understanding these formations.
How to read candlestick charts - Spinning Tops
Color of spinning tops candle is not very important, this formation show the indecision between the buyers and sellers in the btcusd trading market. When these btcusd patterns appear at the top of a bitcoin trend or at the bottom of bitcoin trend it might signal that the bitcoin trend is coming to an end & it may soon reverse & start going the other direction. However, it's best to wait for confirmation signals that the direction of a bitcoin trend has reversed before trading the trading signal from this chart setup.
Candle Reversal Setups Formations on btcusd Charts
At the top of an up-wards bitcoin trend a black/red spinning tops shows that a reversal is more likely than when color of the candle is white/blue.
At the bottom of a Crypto downward bitcoin trend a white/blue spinning top illustrates and shows that a reversal is more likely than when the colour is black/red.
This reversal ==22==cryptocurrencycrypto signal is confirmed when the next candlestick pattern formation which forms after the spinning tops closes below the neckline for a downward bitcoin trend reversal cryptocurrency signal confirmation, and closes above the neckline for a reversal ==22==cryptocurrencycrypto signal in a downwards trend.
The neck line is:
- For an Upwards Bitcoin Trend - The open of the previous candlestick that was drawn just before the spinning top.
- For a Downward Bitcoin Trend - The open of the previous candlestick that was drawn and formed just before the spinning top candlestick
Shown Below is an example of this Japanese charting techniques where this pattern has formed & how to trade it. On the trading chart below when the btcusd price moved above the neckline the reversal ==22==cryptocurrencycrypto signal given by the spinning top candle was confirmed and this was a good point to exit the short sell bitcoin trade.
Spinning Top Pattern on Chart
The colour of spinning top formed is blue therefore meaning that a reversal was much more likely as opposed to if the color had been red.
Doji Candles Pattern
This is a pattern with same opening & closing bitcoin price. There are various types of doji candle-stick setups which form on charts.
The following example show various patterns of the doji candle:
Long legged doji candle has long upper and lower shadows with opening & closing bitcoin price at the middle. When Long-legged doji appears on a Bitcoin chart it demonstrates and shows the indecision between the cryptocurrency traders, buyer & the sellers(bears).
Shown Below is an example screen-shot screenshot image of the Long Legged
- Doji cryptocurrency chart pattern
Cross Doji BTCUSD Candlestick
Cross doji has got a long lower shadow & a short upper shadow and the open & close-out of the day is the same.
This bitcoin pattern appears at market turning points and warns of a possible bitcoin trend reversal in the Bitcoin. Below is an illustration of this chart setup
- Cross Doji Candle Pattern
Inverted Cross Doji Bitcoin Candle Pattern
Inverted cross doji candles have a long upper shadow & a short lower shadow & the open & close is the same.
This reversal bitcoin pattern appears at market turning points and warns of a possible bitcoin trend reversal in the Bitcoin. Below is an example illustration
- Inverted Cross doji
Analysis in BTCUSD ==22==CryptoCryptoCurrency Trading - All doji candlesticks pattern formation show the indecision in the btcusd trading market this is because at the top of bulls were in total control, at the bottom the sellers were in control but none of them could gain control and at the close of the btcusd trading market the bitcoin price closed unchanged at the same bitcoin price as the opening bitcoin price. This doji pattern illustrates that the overall bitcoin price movement for that given particular day(candlestick trading period) was 0 pips or a minimum range of 1 - 3 pips. Reading these charts patterns require very small pip movement between the opening bitcoin price & closing bitcoin price.
Study More Lessons and Tutorials and Courses:
- BTCUSD Real Account Open ECN
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- Retail BTC USD Traders
- How Can You Sign up a MetaTrader 4 BTCUSD Account?
- How Can You Draw Fibonacci Pullback Levels on a Trend?
