Spinning Tops Candles Pattern and Dojis Candle Patterns

Spinning Tops Candle Patterns

Spinning tops candles setup have a small body with long upper & 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 illustrated & illustrated below shows spinning tops pattern. You can look for the pattern in your MT4 Platform charts. Example illustrated and shown below shows a screen-shot to help traders when it comes to learning & understanding these formations.

How to read candlestick charts - Spinning Tops

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

Candlestick Reversal Patterns Formations on Charts

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

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

The neckline is:

• For an Upwards XAUUSD Trend - The open of the previous candlestick that was drawn just before the spinning top.
• For a Downwards XAUUSD 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 and how to trade it. On the trading chart below when the price moved above the neckline the reversal signal given by the spinning top candlestick was confirmed and this was a good point to exit the short sell trade transaction.

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 & closing price. There are various types of doji candle-stick 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 opening & closing price at the middle. When Long legged doji appears on a XAUUSD chart it indicates indecision between traders, the buyer and the sellers.

Below is an example image image of the Long Legged

• Doji chart pattern

Cross Doji Candlestick

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

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

• Cross Doji Pattern

Inverted Cross Doji Candle Pattern

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

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

• Inverted Cross doji

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