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20.10.2019


AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 30


SPINNING TOP (One Candlestick Pattern

 Description:

The spinning top candlestick opens at (or near) its average price (i.e. its middle), and closes at a similar (but not exactly the same) price, showing that the time frame consisted of both bullish and bearish trading.

Criteria

1. Trend should be Up or Down for a good period.
2. The longer shadow in the both side with the small body.
3. The color of the small body is not important.
4. For confirmation the day after the Spinning Top signal opens lower or higher or sustain below / above the closing of the previous candle.
5. Large volume on the Spinning Top day increases the chances that a blow-off day has occurred although it is not a necessity.
6. Stop loss will be above the Spinning Top or below the Spinning Top.
7. Target 1:2 Ratio minimum for more modify stop loss time to time.

Pattern psychology:

As we saw above spinning top occurs with small real body. which shows on a closing basis there was no movement from opening to the closing of trade. The long shadows indicate that bulls and bears were fighting and in the end no nobody was able to win convincingly.

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