: support levels resistance levels trendlines (trendlines provide dynamic support and resistance levels). It is nothing complicated. So the color of the spinning top candlestick pattern does not matter. Lets look at them, shall we? Why not copy and paste the article link in there? But this is not the case at all times. Lets assume that on the first chart on the left, price is going up and hits a resistance level and moves down and the next chart to it on the right, price is going down and hits a support level and bounces. This chart shows the green situation: This second chart shows the red situation: read Reversal Trading Forex Pair chfjpy. Spinning top is a candlestick pattern a substantially shorter body surrounded on both sides by two long candlestick wicks.
That in my mind is the real beauty about trading spinning tops. These two charts below explain what Im talking about here. Are the bears or bulls in control or are they even? This is one candlestick pattern which has a small body with long shadows and longer uppers, ensuring spinning top showcases a wide trading range. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
Similarly, a spinning top at the bottom of a downtrend could signal that. Candlesticks that have small bodies with upper and lower shadows that exceed the length of the body.