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

Spinning Tops Consolidation Commodity Candles Pattern

Spinning tops candlesticks 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 top on a matchstick.

The upper and lower shadows of the spinning tops are longer than the body. The example illustrated and shown below shows spinning tops pattern. You can look for pattern in your MT4 Commodity Trading Platform charts. The example illustrated and shown below shows a screenshot to help traders when it comes to learning & understanding these formations.

How to read candle charts - Spinning Tops

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

Candlestick Stick Reversal Patterns Formations on Trading Charts

At the top of an upward commodity trend a black/red spinning tops shows that a reversal is more likely than when the color of the candle is white/blue.

At the bottom of a Commodities Trading downwards commodity trend a white/blue spinning top shows that a reversal is more likely than when the color is black/red.

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

The neckline is:

• For an Upwards Commodity Trading Trend - The open of the previous candle that was drawn just before the spinning top.
• For a Downward Commodity Trading Trend - The open of the previous candle 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 commodity signal given by the spinning top candlestick was confirmed and this was a good point to exit the short sell commodity trade.

Spinning Tops Pattern on a Chart

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 Candles Pattern

This is a pattern with the same opening & closing commodities price. There are various types of doji candlestick patterns that form on charts.

following example show various patterns of the doji candlestick:

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

Below is an example screenshot image of the Long Legged

• Doji commodities chart pattern

Cross Doji Commodities Candlestick

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

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

• Cross Doji Pattern

Inverted Cross Doji Commodity Candle

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

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

• Inverted Cross doji

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