Different Types of Spinning Tops

Spinning Tops is a type of candlestick indicating a positive reversal signal. This means that the market will have a sudden movement that will change in direction. Most likely, Spinning Tops consists of a small body and a long upper and lower shadows. Take note that the upper and lower shadows should always be longer than the body. Additional discussion about this type of candle stick is posted on this article entitled Spinning Top Reversal.

So what are the different types of the Spinning Tops?

Doji Candlesticks

This form of candlestick consist of a body with almost the same opening and closing price. They are commonly encountered consisting of long-legged shadows and a small body at the middle part. Traders can make use of them before making any necessary actions on their trades.

Cross Doji

This type of candlestick forms an exact image of the holy cross. It consists of a body with equal opening and closing prices. It has a long lower shadow than the upper shadow. Traders often interpret them as a positive bullish reversal.

Inverted Cross Doji

It is the complete opposite of the candlestick mentioned above. It consists of an equal opening and closing prices making its body completely just a form of horizontal line. The upper shadow is longer than the lower shadow and they often indicate bearish market reversal.

As of now, these are the most common types of Spinning Tops that you will most likely encounter on your trading activity. However, there are more different types of them but not really necessary since they all indicate the same principle of telling you about high probability of reversal trend that might occur.

No comments:

Post a Comment