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Spinning Tops Candlesticks and Dojis Candles - How to Trade Spinning Tops and Doji Patterns

Doji Consolidation Candlesticks and Doji Continuation Candles - Spinning Tops Candles - Spinning Tops Consolidation Candle Patterns

Spinning tops candles pattern have a small body with long upper & lower shadows. These spinning tops are referred to by this name of spinning tops because they are similar to a spinning top on a matchstick.

The upper and lower shadows of the spinning tops are longer than the body. The example below shows the spinning top pattern. You can look for the pattern in your MetaTrader 4 Platform charts. The example below shows a screenshot to help traders when it comes to learning and understanding these formations.

Spinning Tops Consolidation Candle Patterns

How to read candlestick charts - Spinning Tops

The color of the spinning top candle is not very important, this formation show the indecision between the buyers and sellers in the FX market. When these patterns appear at the top of a trend or at the bottom of the trend it might signify that the trend is coming to an end and it might soon reverse and start going the other direction. However, it is better to wait for confirmation trading signals that the direction of a currency has reversed before trading the trading signal from this chart formation.

Candle Reversal Patterns Formations on Trading Charts

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

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

This reversal signal is confirmed when the next candlestick pattern that forms after the spinning tops closes below the neckline for a downwards trend reversal signal confirmation, and closes above the neckline for a reversal signal in a downwards trend.

The neckline is:

  • For an Upward Forex Trend - The open of the previous candlestick that was plotted just before the spinning top.
  • For a Downwards Forex Trend - The open of the previous candlestick that was plotted 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 price moved above the neckline the reversal signal given by the spinning top candlestick was confirmed and this was a good point to exit the short sell trade.

Doji Consolidation Candles Pattern & Doji Continuation Candle Patterns - Spinning Tops Consolidation Candle Patterns

Spinning Tops Pattern on a Chart

The color of 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 pattern with the same opening and closing price. There are various types of doji patterns that form on charts.

The following examples explain various patterns of the doji candle:

Long-legged doji candlestick has long upper and lower shadows with opening and closing price at the middle. When the Long-legged doji appears on a Forex chart it indicates indecision between currency traders, the buyer and the sellers.

Below is an example screen shot image of the Long Legged

Doji Candle Consolidation Candles Patterns and Doji Continuation Candle Patterns

  • Doji chart pattern

Cross Doji

Cross doji has a long lower shadow and a short upper shadow and the open & close of the day is the same.

This pattern pops up at market turning points & warns of a possible trend reversal in Forex. Shown Below is as example of this chart formation

Spinning Tops Consolidation Candles Patterns

  • Cross Doji Pattern

Inverted Cross Doji

Inverted cross doji candlesticks have a long upper shadow and a short lower shadow and the open & close is the same.

This reversal pattern pops up at market turning points & warns of a possible trend reversal in Forex. Shown Below is an example

Doji Consolidation Candlesticks Pattern & Doji Continuation Candles Patterns

  • Inverted Cross doji

Technical Analysis in FX Trading - All doji candles pattern show indecision in the forex 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 market the currency price closed unchanged at the same price as the opening price. This doji shows that the overall 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 price and closing price.


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