ForexEzy
No Result
View All Result
  • Home
  • Getting Started with Forex
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
  • Top Forex Brokers
  • Top Forex Robots
  • Commentary
  • Blog
  • Home
  • Getting Started with Forex
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
  • Top Forex Brokers
  • Top Forex Robots
  • Commentary
  • Blog
No Result
View All Result
ForexEzy
No Result
View All Result
Home Forex Education Technical Analysis

Trading With Spinning Tops and Doji Candlestick Pattern

by Tim Baudin
September 8, 2016
in Technical Analysis
0
Trading With Spinning Tops and Doji Candlestick Pattern
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter

Candlesticks are the basics of charting and technical analysis. Most of the traders use candlesticks to analyze trading instruments such as currency pairs. There are many candlestick patterns different in formation, nature and result. Spinning tops and doji are candlestick patterns.

These are generally neutral candlestick patterns that indicate indecision between buyer and seller. The formation of spinning tops and doji patterns is almost similar.

Spinning Tops:

This type of candlesticks has a small real body with long upper and lower shadow. Open and close price is close to one another but not equal. The length of upper and lower shadows is near or similar. This candlestick represents the indecision between buyer and sellers. Near or equal upper and lower shadow represent the equal amount of buying and selling pressure.

Here is a figure showing the shape of spinning tops candlestick patterns.

Spinning Tops candlesticks

The spinning top candlestick pattern can identify possible trend reversal if found after a significant or prolonged trend. For example, if spinning top candlesticks found at the top of a prolonged uptrend, this indicates a possible bearish reversal.

Spinning top candlesticks after a prolonged downtrend indicates a possible upward or bullish reversal.

Here is an example chart of reversals due to spinning top candlestick patterns showed on the 4-hour chart of NZD/USD.

spinning-top-candlestick-patterns

In the case of trading, this candlestick pattern should be combined with other indicators or charting tools. Trend lines and chart patterns work very well with candlestick patterns.

Spinning tops candlestick pattern combined with chart patterns or trend lines is a very effective price action based trading strategy.

spinning-top-in-a-W-pattern

The 4-hour chart of NZD/USD (given above) is showing spinning top candlestick patterns are found in a W pattern. The spinning top pattern is indicating a strong possibility of reversal here, with the help of W pattern. Other chart patterns like, M pattern or head and shoulders patterns are also effective for this type of trading approach.

Doji:

Doji is another neutral candlestick pattern that indicates indecision between buyers and sellers. This pattern is similar to spinning top candlestick pattern. This pattern has long upper and lower shadow like spinning tops.

But the open and close price of this pattern are virtually equal this there is very little or no real body is seen in this candlestick. Here is an example of this candlestick pattern.

Doji Candlestic

Doji is an important neutral candlestick that often used as reversal candlestick pattern in some cases. This pattern is useful if combined properly with trend lines or chart patterns. This candlestick pattern can play an important role in any price action based trading strategy.

Doji-Candlestick-Pattern

4-hour chart of NZD/USD (given above) is showing the effect of doji candlestick in finding reversals. In the chart above a reversal has occurred as soon as a doji candle has hit the trend line. This trend line is heading upward indicating the presence of an uptrend and a possibility of pullback or getting support from this trend line.

At this time,  a doji candlestick near this trend line after a downfall has confirmed a possible pullback. A strong bullish candle after the doji candle has provided more confirmation.

Trading forex using candlesticks only is not so easy. This requires a high level of knowledge, patience, and experience to trade with simple charts. If you find it difficult to trade with candlesticks only, then you better add other suitable tools with candlestick patterns.

ShareTweet
Previous Post

Types of Japanese Candlestick Patterns

Next Post

Forex Pivot Points Trading Strategy Explained

Related Posts

An Introduction To Forex Momentum Indicators

An Introduction To Forex Momentum Indicators

by Tim Baudin
January 19, 2021
0

Overview There is a recurring belief in trading communities that price lies, but momentum doesn’t. The forex market is somewhat...

An Introduction To Forex Indicators

An Introduction To Forex Indicators

by Chintan Patel
January 1, 2021
0

What are the Forex indicators? A vast part of technical analysis is understanding and trading with these tools. Although they...

Using Trendlines and Saucer Formations in Trading

Using Trendlines and Saucer Formations in Trading

by Tim Baudin
December 21, 2020
0

Trendlines are those lines that you can recognize easily. A trader draws trendlines on charts in order to connect a...

RSI - Top 3 Real Charts You've Missed

RSI – Top 3 Real Charts You’ve Missed

by Tim Baudin
December 17, 2020
0

Overview Are you still doubting the power of the RSI? This article will cover three recent forex trading opportunities mostly...

The Trading Indicator You Have not Heard of – The Williams %R

The Trading Indicator You Have not Heard of – The Williams %R

by Adam Stanley
December 1, 2020
0

The Williams Percentage Range is a highly effective tool that measures price variations over a period of time for various...

Load More

Best Forex EA

  • ROFX 9/10
  • Forex Fury 8/10
  • FXgoodway 7.5/10
  • Z Trader FX EA 7/10
  • Forex Incontrol Reborn 6.5/10

Popular News

  • The Best RSI and CCI Combination Trading Strategy for Optimum Returns

    The Best RSI and CCI Combination Trading Strategy for Optimum Returns

    2 shares
    Share 2 Tweet 0
  • Rofx Review – High Profitability and Stable Performance Analysis

    29 shares
    Share 29 Tweet 0
  • The Best Forex Scalping Strategy – Using 3 Popular Technical Indicators

    0 shares
    Share 0 Tweet 0
  • The Best MT4 Indicators & Expert Advisors For Forex Trading

    2 shares
    Share 2 Tweet 0
  • How to check if the indicator is repainting?

    2 shares
    Share 2 Tweet 0

Trading

Footer

We are dedicated to demystify the world of forex trading for you – no matter what level you are on.

Categories
  • Automated Trading
  • Day Trading
  • Forex Basics
  • Forex Brokers
  • Forex Education
  • Forex Forecasts
  • Forex Indicators
  • Forex Market Commentary
  • Forex Robots
  • Forex Signals
  • Forex Tools
  • Forex Trading Strategies
  • Fundamental Analysis
  • Money Management
  • News
  • Risk Management
  • Social Trading
  • Technical Analysis
  • Top World Traders
  • Trading Psychology
  • Uncategorized
Tags
arbitrage atr bollinger bands cci chart patterns classics copy trading courses day trading forex brokers forex charts forex ea forex education forex forecasting Forex Indicators forex software reviews grid trading hedging ichimoku macd market cycles news trading oscillators price action trading rsi social trading strategies tips & tricks trading bots trading platforms trend trading Video
  • Terms of Use
  • Privacy Policy
  • Compensation Disclosure
  • Risk Disclosure
  • About Us
  • Contact Us

Copyright © 2020 by ForexEzy.com

No Result
View All Result
  • Home
  • Getting Started with Forex
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
  • Top Forex Brokers
  • Top Forex Robots
  • Commentary
  • Blog

© 2020, Forexezy.