They’re all basic Japanese candlesticks!
Let’s look at each type of candlestick and what they mean in terms of price action.
Japanese candlesticks with a long upper shadow, a long lower shadow, and small actual bodies are called spinning tops.
The color of the body is not very important.
The Spinning Top pattern shows the indecision between the buyers and sellers.
The small real body (whether hollow or filled) shows a little movement from open to close.
And the shadows indicate that both buyers and sellers were fighting, but nobody could gain the upper hand.
Even though the session opened and closed with little change, prices moved significantly higher and lower in the meantime.
Neither buyers nor sellers could gain the upper hand, and the result was a standoff.
- If a spinning top forms during an uptrend. This usually means there aren’t many buyers left. And a reversal in direction could occur.
- If a spinning top forms during a downtrend. This usually means there aren’t many sellers left. And a reversal in direction could occur.