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Spinning Tops Candlesticks Pattern & Dojis Candle Patterns

Spinning Top Candle Patterns

Spinning top candles exhibit a small central body flanked by long upper and lower shadows. They are named 'spinning tops' due to their visual resemblance to the top of a matchstick used for spinning.

The upper & lower shadows of the spinning top are longer than the body. The example illustrated & shown below shows spinning tops pattern. You can look for the pattern on your MT4 charts. Example shown below shows a screen-shot to help online traders when it comes to learning and understanding these formations.

Spinning Tops XAUUSD Candlesticks Setups and Doji Candle Patterns - Read Spinning Tops Candle Pattern

How to study candlestick charts - Spinning Tops

Color of the spinning top candle-stick is not very important, this formation show the indecision between the buyers & sellers(bears) in the trading market. When these patterns appear at the top of a trend or at the bottom of the trend it may signify that the trend is coming to an end & it may soon reverse & start moving the in the opposite direction. However, it is best to wait for confirmation signal that direction of the market has turned & reversed before trading the signal from this chart setup formation.

Candle Reversal Patterns Formations in xauusd Trading Charts

At the peak of an uptrend, a black or red spinning top signals a likely reversal. This holds more than a white or blue one.

At the end of a downward XAUUSD trend, a white or blue spinning top hints at reversal. It's stronger than black or red.

This signal is proven when the next candle that forms after the spinning tops candle closes below the neckline, showing a downward trend, & closes above the neckline, showing a reversal in a downward trend.

The neck-line is:

  • For an Upwards XAUUSD Trend - The open of the previous candlestick that was formed just before the spinning top.
  • For a Downward Trend - The open of the previous candlestick that was formed just before the spinning top candlestick

Illustrated below is a concrete instance utilizing Japanese charting methodologies where this specific pattern materialized, accompanied by instructions on how to trade it. In the chart provided, the moment the price surpassed the neckline, the reversal signal generated by the spinning top candle formation was validated, indicating an optimal juncture to close out a previously initiated short sell position.

Spinning Tops Candlesticks Patterns & Doji Candle Trading Setups

Spinning Top Candle Pattern on a Chart

The spinning top is blue, so reversal odds rise. Red would mean less chance.

Doji Candles Pattern

This setup has the same open and close price. Doji patterns come in different types on charts.

following exemplification show various different patterns of the doji candle:

Long-legged doji candle-stick has long upper & lower shadows with opening and closing price at the middle. When Long legged doji appears on a XAUUSD Gold chart it shows the indecision between the traders, the buyer & the sellers.

Below is an example screenshot of Long Legged

Spinning Tops Candlesticks Patterns & Doji Candle Setups

  • Doji chart pattern

Cross Doji Candle

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

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

Spinning Tops Candlesticks Patterns & Doji Candles Setups

  • Cross Doji Candle Pattern

Inverted Cross Doji Candle Pattern

Inverted cross doji candles feature a long upper shadow and short lower one. Open and close prices match.

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

Spinning Tops XAUUSD Candlestick Trading Setups and Doji Candles Patterns

  • Inverted Cross doji

In the context of Technical Analysis for XAUUSD Trading, all doji candle patterns indicate market indecision. This occurs because, at the peak, bulls (buyers) dominated the market, while at the bottom, bears (sellers) were in control. Yet, neither side could establish complete dominance by the close of the market period. The closing price, represented by this candlestick, remained unchanged at the same level as the opening price. This doji candlestick pattern shows and illustrates that the overall price movement for that particular trading day was zero pips in total overall or just a minimum price range movement of between 1 to 3 pips. Reading these charts patterns require a very small pip movement between the opening price & closing price.

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