How Can Spinning Tops Candlesticks and Doji Patterns on CFDs Charts Be Traded?

Reversal Spinning Tops Candlestick Patterns

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

The upper and lower shadows of the spinning tops are longer than the body. The example explained and illustrated below shows the spinning top pattern. You can look for pattern in your MT4 CFD 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

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

Candle Stick Reversal Patterns Formations on Trading Charts

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

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

The neckline is:

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

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 price moved above the neckline the reversal cfd signal given by the spinning top candlestick was confirmed and this was a good point to exit the short sell cfd trade.

Spinning Tops Pattern on a Chart

Color of the 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 the same opening and closing cfd price. There are various types of doji candle patterns that form on charts.

following example illustrate various patterns of the doji candlestick:

Long-legged doji candlestick has long upper and lower shadows with opening and closing cfd price at the middle. When the Long-legged doji pops up on a CFD Trading chart it indicates indecision between cfds traders, buyer & the sellers.

Below is an example image image of the Long Legged

• Doji cfd chart pattern

Cross Doji CFD Candle

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

This cfd pattern appears at market turning points & warns of a possible cfd trend reversal in the CFD. Below is as example of this chart formation

• Cross Doji Pattern

Inverted Cross Doji CFDs Candle

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

This reversal cfd pattern appears at market turning points & warns of a possible cfd trend reversal in the CFD. Below is an example

• Inverted Cross doji

Technical Analysis in CFDs Trading - All doji candles pattern show indecision in the cfd 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 cfd market the cfd price closed unchanged at the same cfd price as the opening cfd price. This doji shows that the overall cfd 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 cfd price and closing cfd price.