Forex Candlestick Spinning Top – A variation of Candlesticks Doji

Forex Candlestick Spinning top is a special kind of Doji that we saw in the last post on forex candlesticks. Like you saw in that post, ideally doji hs same open and close price, signifying no body, and good sized wicks on both the ends.

A spinning top is almost same except that the size of the body is few pips. The body size is still very  small, but it is bigger than forex candlesticks doji.

Look at the chart below

As you can see, the spinning top shows that a significant trend  may come to an end since there is a indecision in the market. But just like candlestick doji, the volatility in the market is known from the size of wicks. If the volatility is high, the wicksize is large.

So, needless to say, both spinning top and doji are important forex candlestick patterns

Forex Candleticks Charts – Amazing technical indicator called forex candlesticks

Forex Candlesticks are amazing. They are one of those indicators that can help understand accurately what happenned or what is going to happen in the forex market.

Since the introduction of japanese candlesticks to western world by steve nison, the candlesticks have gained a lot of following in trading community.

In simple terms, a forex candlestick indicates the price movement during a particular period. So on a daily chart for example, one candle will indicate the price information of one day.Body and wicks of candle

Here is what a candle tells –

1. Opening Price in the duration

2. Closing price

3. Lowest price and

4. Highest price.

The difference between the open and close is the body of the candle. While the ends are known as wick.

The Threads in the adjascent figure are the wicks of the candle.
The green candlestick in a forex chart is a bullish candle which shows that price has increased during that particular time frame. A red forex candlestick shows that price has come down.
As you can see that candles are highly useful for technical analysis. Due to their versatile nature, candlestick charts are common in any form of technical analysis, let it be a forex market, stocktrading, options or even commodities.
Thats all in this post. Tune back again to learn some popular and accurate forex candlestick formations.