Wednesday, January 8, 2014
SPINNING TOP
UP SPINNING TOP: a candlestick has a tiny up body with upper and lower shadows that have a greater length than the body, it is considered as a type of Doji, and will act as a Doji. The market moves higher and then sharply lower, or vice versa, closing above the opening price creating a tiny white body, representing complete indecision between the bulls and the bears, the length of the shadows is not important. An Up Spinning Top occurs after a long rally or a long Up candlestick to imply weakness among the bulls and warning a potential change or an interruption in the trend; occurring after a long decline or a long down candlestick to imply weakness among the bears and warning a potential change or an interruption in the trend. Need more other candlesticks to confirm a trend.
DOWN SPINNING TOP: a candlestick has a tiny down body with upper and lower shadows that have a greater length than the body, it is considered as a type of Doji, and will act as a Doji. The market moves higher and then sharply lower, or vice versa, closing below the opening price creating a tiny black body, representing complete indecision between the bulls and the bears, the actual length of the shadows is not important. A Down Spinning Top occurs after a long rally or long up candlestick, this imply weakness among the bulls and warning a potential change or an interruption in the trend; occurring after a long decline or a long down candlestick to imply weakness among the bears and warning a potential change or an interruption in the trend. Need more other candlesticks to confirm a trend.
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