Reversal Candlestick Patterns - Spinning Tops Candlestick Pattern

Spinning Tops Candlesticks Pattern

Spinning tops candlesticks pattern have a small body with long upper and lower shadows. These spinning tops candlesticks pattern 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 candlesticks patternare longer than the body. The example shown below shows the spinning tops candlesticks pattern. You can look for the spinning tops candlesticks pattern in your MetaTrader 4 xauusd charts. The example shown below shows a screenshot to help xauusd traders when it comes to learning and understanding these spinning tops candlesticks pattern formations.

How to Read Candlestick Charts Pattern - Spinning Tops Candlestick Pattern - How to Trade Spinning Tops Candlesticks Patterns - How to Analyze Spinning Tops Candlesticks Pattern

The color of the spinning tops candlesticks pattern is not very important, this formation show the indecision between the buyers and sellers in the XAUUSD market. When these spinning tops candlesticks patterns appear at the top of a xauusd trend or at the bottom of the xauusd trend it might signify that the xauusd 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 xauusd trend has reversed before trading the signal from this spinning tops candlesticks pattern formation.

Spinning Tops Candlestick Reversal Patterns Formations on xauusd Charts

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

At the bottom of a XAUUSD downward xauusd trend a white/blue spinning top candlestick pattern shows that a trend reversal is more likely than when the color is black/red.

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

The spinning tops candlesticks pattern neckline is:

• For an Upward XAUUSD Trend - The open of the previous candlestick that was drawn just before the spinning tops candlestick pattern.
• For a Downward XAUUSD Trend - The open of the previous candlestick that was drawn just before the spinning tops candlestick pattern

Below is an example of this Japanese candlestick charting techniques where this spinning tops candlesticks pattern has formed and how to trade it. On the gold chart below when the price moved above the neckline the xauusd trend reversal signal given by the spinning tops candlestick pattern was confirmed and this was a good point to exit the short sell gold trade transaction.

Spinning Tops Candlesticks Pattern on a Chart - Spinning Tops Candlestick Patterns - Spinning Tops Consolidation Candlesticks Pattern

The color of the spinning tops candlestick pattern formed is blue therefore meaning that a xauusd reversal was more likely as opposed to if the color of the spinning tops candlestick pattern had been red.