Spinning Tops Candlesticks Pattern and Dojis Indices Trading Candlestick Patterns - How Can Spinning Tops Candlesticks and Doji Patterns on Indices Trading Charts Be Traded
Doji Consolidation Candlesticks Pattern and Doji Continuation Indices Trading Candlestick Patterns - Spinning Tops Indices Trading Candlestick Patterns - Spinning Tops Consolidation Indices Candlesticks Pattern - Reversal Spinning Tops Indices 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 illustrated and explained below shows the spinning tops pattern. You can look for the indices trading pattern in your MT4 Indices Trading Platform charts. The example illustrated and explained below shows a screenshot to help indices traders when it comes to learning and understanding these formations.
How to read candlestick indices trading 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 Indices trading market. When these indices trading chart patterns appear at the top of a indices trading trend or at the bottom of the indices trading trend it might signify that the indices 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 indices 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 indices 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 Indices downward indices trading trend a white/blue spinning top shows that a reversal is more likely than when the color is black/red .
This reversal indices trading signal is confirmed when the next candlestick pattern that forms after the spinning tops closes below the neckline for a downward indices trading trend reversal indices trading signal confirmation, and closes above the neckline for a reversal indices trading signal in a downward trend.
The neckline is:
- For an Upward Indices Trend - The open of the previous candlestick that was drawn just before the spinning top.
- For a Downward Indices Trend - The open of the previous candlestick that was drawn just before the spinning top
Below is an example of this Japanese indices charting techniques where this indices trading pattern has formed and how to trade it. On the indices trading chart below when the indices price moved above the neckline the reversal indices trading signal given by the spinning top candlestick was confirmed and this was a good point to exit the short sell indices 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 indices 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 indices price at the middle. When the Long-legged doji appears on a Indices chart it indicates indecision between indices traders, the buyer and the sellers.
Below is an example screenshot image of the Long Legged
- Doji indices 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 indices trading pattern appears at market turning points and warns of a possible indices trading trend reversal in the Indices. 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 indices trading pattern appears at market turning points and warns of a possible indices trading trend reversal in the Indices. Below is an example
- Inverted Cross doji
Technical Analysis - All doji candlesticks pattern show indecision in the indices 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 indices trading market the indices trading price closed unchanged at the same indices price as the opening indices price. This doji shows that the overall indices 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 indices price and closing indices price.