Spinning Tops Candles Pattern and Dojis Candle Patterns
Spinning Top Candle Patterns
Spinning tops candles setup have a small body with a long upper and lower shadows. These spinning top are referred by this name/term of spinning tops because they are similar to a spinning tops on a matchstick.
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 MetaTrader 4 charts. Example illustrated & shown below shows a screen-shot to help online traders when it comes to studying & 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(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 and it may soon reverse & start moving the in the opposite market trend trend trend market direction. However, it is best to wait for confirmation signal that direction of a has turned & reversed before trading the trading signal from this chart setup formation.
Candlestick Reversal Patterns Formations on xauusd Trading Charts
At the top of an upward trend a black/red spinning tops shows that a reversal is more likely than when color of the candle is white/blue.
At the bottom of a XAUUSD downwards trend a white/blue spinning top illustrates that a reversal is more likely than when the colour 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 signal setup confirmation, & closes above the neck-line for a reversal signal in a downward trend.
The neck-line is:
- For an Upwards XAUUSD Trend - The open of the previous candle that was formed just before the spinning top.
- For a Downwards Gold Trend - The open of the previous candle that was formed just before the spinning top candlestick
Below is an example of this Japanese charting techniques where this pattern has formed and how to trade it. On the chart below when the price moved above the neck line the reversal signal setup given by the spinning top candle was confirmed & this was a good point to exit the short sell trade.
Spinning Top Candle Pattern on a Chart
Color of the spinning top formed is blue therefore meaning that a reversal was more likely as opposed to if the color had been red.
Doji Candles Pattern
This is a set-up with the same opening & closing price. There are various types of doji candle-stick patterns which form on the charts.
following exemplification show various different patterns of the doji candle:
Long-legged doji candle-stick has long upper & lower shadows with opening & closing price at the middle. When Long legged doji appears on a XAUUSD Gold chart it shows the indecision between the traders, the buyer and the sellers.
Below is an example screenshot of Long Legged
- Doji chart pattern
Cross Doji Candlestick
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 trading market. Shown Below is an example illustration of this chart setup formation
- Cross Doji Candle Pattern
Inverted Cross Doji Candle Pattern
Inverted cross doji candles have a long upper shadow and a short lower shadow & the open & close is the same.
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
- Inverted Cross doji
Technical Analysis in Gold Trading - All doji candles pattern show the indecision in the market this is because at the top bulls were in total 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 level as the opening price. This doji shows that the overall price movement for that particular trading day was zero pips or just a minimum price range of 1 3 pips. Reading these charts patterns require a very small pip movement between the opening price & closing price.
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