Spinning Tops Candlesticks Pattern and Dojis Stock Trading Candlestick Patterns - How Can Spinning Tops Candlesticks and Doji Patterns on Stock Trading Charts Be Traded
Doji Consolidation Candlesticks Pattern and Doji Continuation Stock Trading Candlestick Patterns - Spinning Tops Stock Trading Candlestick Patterns - Spinning Tops Consolidation Candlesticks Pattern - Reversal Spinning Tops Stock Trading Candlestick Patterns
Spinning tops candlesticks pattern have a small body with long upper and lower shadows. These spinning tops are referred to by this name because they are similar to spinning tops on a matchstick.
The upper and lower shadows of the spinning tops are longer than the body. The example below shows the spinning tops pattern. You can look for the pattern in your MetaTrader 4 Stock Trading Platform charts. The example below shows a screenshot to help traders when it comes to learning and understanding these formations.
How to read candlestick charts - Spinning Tops
The color of the spinning tops candlestick is not very important, this formation show the indecision between the buyers and sellers in the Stock trading market. When these stock trading chart patterns appear at the top of a stock trading trend or at the bottom of the stock trading trend it might signify that the stock trading trend is coming to an end and it might soon reverse and start going the other direction. However, it is best to wait for confirmation signals that the direction of a stock trading trend has reversed before trading the signal from this chart formation.
Candlestick Reversal Patterns Formations on Trading Charts
At the top of an upward stock trading trend a black/red spinning top shows that a reversal is more likely than when the color is white/blue.
At the bottom of a Stock downward stock trading trend a white/blue spinning top shows that a reversal is more likely than when the color is black/red .
This reversal stock trading signal is confirmed when the next candlestick pattern that forms after the spinning tops closes below the neckline for a downward stock trading trend reversal stock trading signal confirmation, and closes above the neckline for a reversal stock trading signal in a downward trend.
The neckline is:
- For an Upward Stock Trend - The open of the previous candlestick that was drawn just before the spinning top.
- For a Downward Stock 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 stock price moved above the neckline the reversal stock trading signal given by the spinning top candlestick was confirmed and this was a good point to exit the short sell stock trade.
Spinning Tops Pattern on a Chart
The 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 the same opening and closing stock price. There are various types of doji patterns that form on charts.
The following examples show various patterns of the doji candlestick:
Long-legged doji candlestick has long upper and lower shadows with the opening and closing stock price at the middle. When the Long-legged doji appears on a Stock chart it indicates indecision between stock traders, the buyer and the sellers.
Below is an example screenshot image of the Long Legged
- Doji stock trading chart pattern
Cross doji has a long lower shadow and a short upper shadow and the open and close of the day is the same.
This stock trading pattern appears at market turning points and warns of a possible stock trading trend reversal in the Stock. Below is as example of this chart formation
- Cross Doji 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 stock trading pattern appears at market turning points and warns of a possible stock trading trend reversal in the Stock. Below is an example
- Inverted Cross doji
Technical Analysis - All doji candlesticks pattern show indecision in the stock trading 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 and at the close of the stock trading market the stock trading price closed unchanged at the same stock price as the opening stock price. This doji shows that the overall stock 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 stock price and closing stock price.