What does a spinning top candlestick represent?
A spinning top is a candlestick pattern that has a short real body that’s vertically centered between long upper and lower shadows. The candlestick pattern represents indecision about the future direction of the asset. It means that neither buyers nor sellers could gain the upper hand.
How do you trade a spinning top candle?
How to Trade the Spinning Top Candle
- Locate candle with a short body and long wicks on both sides.
- Identify market trend by using trend lines or technical indicators.
- Wait for confirmation prior to entering trade.
- If confirmed, place trade in desired direction.
Is spinning top bullish or bearish?
A spinning top occurring at the peak of an uptrend can signify that the bullish is losing track and the trend is about to reverse. However, when a spinning top is at the base of a downtrend, it is a sign that the bearish is losing control, and the bullish may take control.
Is spinning top bullish?
If the spinning top is seen at the bottom of a downtrend, it could mean that a bullish reversal might happen. Conversely, if it occurs at the top of an uptrend, it could signal bearish reversal.
Is a spinning top bearish?
Spinning Top candlestick pattern It can be a bearish or bullish candle. It’s a small candlestick pattern. In this pattern, the stock prices open and close are near each other. This pattern forms when there’s indecision among the buyers and sellers in the uptrend, downtrend, or sideways trend.
Is a spinning top a doji?
Spinning Top and Dojis are very similar and they mean the same thing: Doji indicates indecision. Spinning Top indicates greater indecision. When looking at the two signals, the difference is in the body of the candle. The Doji opens and closes around the same level (almost the same price).
Is spinning top same as doji?
Doji and spinning top candles are quite commonly seen as part of larger patterns, such as the star formations. Likewise, if a doji appears lower than a filled candle, it signals a reversal of the downward trend. Spinning tops are quite similar, but their bodies are larger, where the open and close are close.
What type of motion is spinning top?
Circular motion or rotation motion is seen on the spinning top.
Is a doji bullish or bearish?
A gravestone doji is a bearish pattern that suggests a reversal followed by a downtrend in the price action. A gravestone pattern can be used as a sign to take profits on a bullish position or enter a bearish trade. The opposite of a gravestone doji is a dragonfly doji.
What is considered a doji?
A doji is a name for a session in which the candlestick for a security has an open and close that are virtually equal and are often components in patterns. Alone, doji are neutral patterns that are also featured in a number of important patterns.
What are spinning tops called?
top; whirligig; teetotum; plaything; toy.
What’s another word for spinning top?
What does the spinning top candlestick pattern mean?
A spinning top is a candlestick formation that signals indecision regarding the future trend direction. Similar to a doji pattern, a spinning top is considered a neutral pattern, although many do end in reversals.
Is the spinning top candlestick pattern the same as Doji?
The Spinning Top candlestick pattern is comparatively easy to identify just like the Doji candlestick pattern. It has the same structure and logic as the simple Doji pattern. However, it has a wider candle body which exhibits a significant movement in market prices during the period of the candle.
When does the pattern of two candlesticks complete?
The pattern completes when a candle closes past the high or low of the first candle. Some of the most famous candlesticks patterns are made up of two candlesticks. These patterns can signal either a reversal or a continuation – no indecision patterns, like with single candlesticks.
How is spinning top candlestick used in forex trading?
The spinning top candlestick can be applied to Forex trading strategies like: 1 trendline trading strategy 2 support and resistance trading strategy 3 diagonal channel trading strategy