How Can Spinning Tops Candlesticks and Doji Patterns on Cryptocurrency Charts Be Traded

Spinning Tops Cryptocurrency Candlestick Patterns

Spinning tops candlesticks pattern have a small body with long upper and lower shadows. These spinning tops are referred to by this name because they are similar to spinning tops on a matchstick.

The upper and lower shadows of the spinning tops are longer than the body. The example illustrated below shows the spinning tops pattern. You can look for the pattern in your MetaTrader 4 Bitcoin Trading Platform charts. The example illustrated below shows a screenshot to help traders when it comes to learning and understanding these formations.

How to read candlestick crypto charts - Spinning Tops

The color of the spinning tops candlestick is not very important, this formation show the indecision between the buyers and sellers in the btcusd trading market. When these btcusd chart patterns appear at the top of a bitcoin trend or at the bottom of the bitcoin trend it might signal that the bitcoin trend is coming to an end and it might soon reverse and start going the other direction. However, it is best to wait for confirmation signals that the direction of a bitcoin trend has reversed before trading the signal from this chart formation.

Candlestick Reversal Patterns Formations on Trading Charts

At the top of an upward bitcoin trend a black/red spinning top shows that a reversal is more likely than when the color is white/blue.

At the bottom of a Cryptocurrency downward bitcoin trend a white/blue spinning top shows that a reversal is more likely than when the color is black/red.

This reversal cryptocurrency signal is confirmed when the next candlestick pattern that forms after the spinning tops closes below the neckline for a downward bitcoin trend reversal cryptocurrency signal confirmation, and closes above the neckline for a reversal cryptocurrency signal in a downward trend.

The neckline is:

• For an Upward Bitcoin Trend - The open of the previous candlestick that was drawn just before the spinning top.
• For a Downward Bitcoin Trend - The open of the previous candlestick that was drawn just before the spinning top

Below is an example of this Japanese charting techniques where this pattern has formed and how to trade it. On the trading chart below when the btcusd price moved above the neckline the reversal cryptocurrency signal given by the spinning top candlestick was confirmed and this was a good point to exit the short sell bitcoin trade.

Spinning Tops Pattern on a Chart

The color of the spinning tops formed is blue therefore meaning that a reversal was more likely as opposed to if the color had been red.

Doji Candlesticks Pattern

This is a pattern with the same opening and closing bitcoin price. There are various types of doji patterns that form on charts.

The following examples show various patterns of the doji candlestick:

Long-legged doji candlestick has long upper and lower shadows with the opening and closing btcusd price at the middle. When the Long-legged doji appears on a Bitcoin chart it indicates indecision between cryptocurrency traders, the buyer and the sellers.

Below is an example screenshot image of the Long Legged

• Doji cryptocurrency chart pattern

Cross Doji

Cross doji has a long lower shadow and a short upper shadow and the open and close of the day is the same.

This bitcoin pattern appears at market turning points and warns of a possible bitcoin trend reversal in the Bitcoin. Below is as example of this chart formation

• Cross Doji Pattern

Inverted Cross Doji

Inverted cross doji candlesticks have a long upper shadow and a short lower shadow and the open and close is the same.

This reversal bitcoin pattern appears at market turning points and warns of a possible bitcoin trend reversal in the Bitcoin. Below is an example

• Inverted Cross doji

Technical Analysis - All doji candlesticks pattern show indecision in the btcusd trading market this is because at the top of the buyers were in control, at the bottom the sellers were in control but none of them could gain control and at the close of the btcusd trading market the btcusd price closed unchanged at the same btcusd price as the opening bitcoin price. This doji shows that the overall btcusd price movement for that day was zero pips or just a minimum range of 1-3 pips. Reading these charts patterns require very small pip movement between the opening btcusd price and closing bitcoin price.