Reversal Candle-stick Setups - Spinning Tops Candle Pattern

Spinning Tops Candle-sticks Pattern

Spinning tops candle-sticks pattern setup have a small body with long upper and lower shadows. These spinning tops candles pattern are referred by this name because these candlestick patterns are similar to spinning tops spinning on a matchstick.

The upper and lower shadows of the spinning tops candlesticks patternare longer than the body. The example illustrated & shown below shows the spinning tops candlesticks pattern setup. You can look for the spinning tops candle-sticks pattern setup in your MetaTrader 4 charts. The example shown below shows a screenshot to help traders when it comes to learning and understanding these spinning tops candlesticks pattern setups.

How to Read Candle Charts Pattern - Spinning Tops Candle-stick Setup - How to Trade Spinning Tops Candlesticks Patterns - How to Analyze Spinning Tops Candlesticks Pattern

Color of the spinning tops candles pattern is not very important, this pattern show the indecision between buyers & sellers in the market. When these spinning tops candlesticks setups appear at the top of a trend or at the bottom of trend it might signify that the trend is coming to an end and it might soon reverse & begin going the other direction. However, it's best to wait for confirmation signals that the direction of a trend has reversed before trading the signal from this spinning top candles pattern formation.

Spinning Tops Candlestick Reversal Patterns Formations on Charts

At the top of an upward trend a black/red spinning top candlestick setup highlights that a trend reversal is more likely than when the color is white/blue.

At the bottom of a downward trend a white/blue spinning top candlestick setup highlights that a trend reversal is more likely than when the color is black/red.

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

The spinning tops candles pattern neckline is:

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

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

Spinning Tops Candlesticks Pattern on a Chart - Spinning Tops Candle-stick Setups - Spinning Tops Consolidation Candles Pattern

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