Trade Forex Trading

Spinning Tops Candles and Dojis Candles - How to Trade Spinning Tops and Doji Patterns

Doji Consolidation Candles and Doji Continuation Candles - Spinning Tops Candles - Spinning Tops Consolidation Candlestick Setups

Spinning tops candles set-up have small body with long upper & lower shadows. These spinning tops are referred by this name/term of spinning top because they're similar to spinning tops on a matchstick.

The upper & lower shadows of the spinning tops are longer than the body. The illustration below illustrates the spinning top pattern. You can look for pattern on your MT4 charts. The illustration put on display below shows screen shot to help traders when it comes to learning and understanding these patterns.

Spinning Tops Candle Chart Pattern - Doji Consolidation Candles Pattern & Doji Continuation Candle Setups

How to read and study candlestick charts - Spinning Tops

The color of spinning tops candlestick is not very important, this formation show indecision between the buyers(bulls) and sellers(bears) in the trading market. When these setups appear at the top of a market trend or at the bottom of the market trend it might signify that the price trend is coming to an end & it might soon reverse & start and begin going in the other direction. However, it is better to wait out for additional confirmation trading signals which the direction of a currency has reversed before trading the signal from the chart setup formation.

Candlestick Reversal Patterns Formations in Charts

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

At the bottom of a downward 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 candle setup that forms after the spinning tops candle closes below the neckline for a downwards trend reversal setup confirmation, and closes above the neck line for a reversal signal in a downwards trend.

The neck-line is:

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

Displayed Below is exemplification of this Japanese charting techniques where this pattern setup formation has formed & how to trade it. On the chart below when the price moved above the neck-line the reversal signal generated by the spinning top candle was confirmed and this was a good point to exit the short sell trade position.

Spinning Tops Candle Chart Trade Setup on a Chart - Spinning Tops Candles and Doji Candlestick

Spinning Tops Pattern on a Chart

Color of the spinning tops formed is blue thence meaning that a reversal was more likely as opposed to if the colour had been red.

Doji Candles Setup

This is a pattern with same opening and closing price. There are different types of doji candle patterns that form on the charts.

The following illustrations explain different patterns of the doji candlestick:

Long-legged doji candlestick has long upper and lower shadows with opening and closing price at the middle. When the Long legged doji shows up on a chart it shows indecision between the currency traders, the buyer & the sellers(bears).

Displayed Below is exemplification screen-shot screen shot of the Long Legged

Doji Candle-sticks Chart pattern - Doji Consolidation Candle Setup and Doji Continuation Candlestick Patterns

  • Doji pattern

Cross Doji

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

This setup shows up at market turning points and warns of a possible trend reversal in Forex. Shown Below is an example of this chart setup formation

Cross Doji Candle - Doji Consolidation Candles Setup and Doji Continuation Candle Patterns

  • Cross Doji Candle Pattern

Inverted Cross Doji

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

This reversal pattern pops up at market turning points and warns of a possible trend reversal in Forex. Shown Below is an example

inverted Cross Doji Candle Chart pattern - Spinning Tops Candlestick and Doji Candles

  • Inverted Cross doji

Analysis in FX Trading - All doji candlesticks setup show the indecision in the market this is because at the top buyers were in total control, at the bottom the sellers were in control but none of them could gain control and at the close of the market the currency price closed unchanged at the same price as opening price. This doji shows that the overall price movement for that particular day(trading period) was zero pips or a minimum range in the price movement of between 1 and 3 pips. Reading these charts patterns require very small pip(point) movement between the opening price & closing price.

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