CANDLESTICKS

Page 2

The Spinning Top:

The candlestick with a long upper shadow/ wick, long lower shadow/ wick and small real bodies are called 'spinning tops'. The colour of the real body is not very important as this pattern simply indicates the indecision between the buyers and sellers, bulls and the bears.

The small real body (whether green or red) shows little movement from open to close and the shadows/wicks indicate that both buyers and sellers, bulls and bears were fighting but neither gained the upper hand. Even though the session opened and closed with little change, prices moved significantly higher and lower in the meantime.

If a spinning top or even a series of spinning tops formed during an uptrend, this usually means there are not many buyers left and a possible reversal in direction could occur. If a spinning top or series of spinning tops formed during a downtrend, this usually means there are not many sellers left and a possible reversal in direction could occur.

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Spinning Top Candle Stick

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