White Spinning Top

white spinning

WHITE SPINNING TOP

Explanation:

In the case of a White Spinning Top single candlestick pattern, the market moves either above then quickly under the opening level, or vice versa. At the end it closes above the opening price, creating a small real white body. This shows that the market has not decided yet which direction it should take. The lengths of the shadows are not important. What does matter however is the size of the body in relation to the shadows.

Important Factors:

If the White Spinning Top is observed after a long price increase or decrease, or after a long white candlestick or a long black candlestick it means that a trend reversal or a trend interruption could occur.

The White Spinning Top pattern has a low reliability, and it could reflect either a continuation or a reversal of the pattern. As such, it needs to be used with other candlesticks in order to give a better interpretation of the market’s direction.

By | 2013-09-15T12:13:12+00:00 September 15th, 2013|Blog, Candlestick Patterns|0 Comments

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