Spinning Tops Candle-sticks Pattern and Dojis Candlestick Patterns

Doji Consolidation Candles Pattern & Doji Continuation Candle-stick Setup Patterns

Spinning tops candlesticks pattern setup have a small body with long upper & lower shadows. These spinning top are referred to by this name of spinning top because they are similar to spinning tops on a matchstick.

The upper & lower shadows of the spinning tops are longer than the body. The example shown & described below displays the spinning top pattern. You can look for pattern setup on your Meta Trader 4 Stocks Platform charts. Example illustrated & described below shows a screen-shot to help traders when it comes to learning & understanding these formations.

How to read candle charts - Spinning Tops

Color of the spinning top candle-stick is not very important, this formation show the indecision between the buyers & sellers in the market. When these setups 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 and start going the other direction. However, it is best to wait for confirmation signals that the direction of a trend has reversed before trading the signal from this chart formation.

Candlestick Reversal Patterns Formations on Trading 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 candle is white/blue.

At the bottom of a Trading 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 down ward trend.

The neckline is:

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

Shown Below is example of this Japanese charting techniques where this pattern has formed & how to trade it. On the 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.

Spinning Top Pattern on a Chart

Color of the spinning tops 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 same opening & closing price. There are various types of doji candle-stick setups that form on charts.

following examples illustrate various patterns of the doji candle:

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

Shown Below is example screenshot image of the Long Legged

• Doji chart pattern

Cross Doji Candlestick

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

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

• Cross Doji Pattern

Inverted Cross Doji Trading Candle

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

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

• Inverted Cross doji

Analysis in Stock Trading - All doji candle-sticks pattern setup 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.