JAPANESE CANDLE COURSE (2)

Spinning Tops

Pattern: Indecision
Trend: Neutral
Reliability: Low

How to identify it

• A small white or black real body with small leftovers

What does it mean:

These candles by themselves, although they transmit information to us, almost always have to be seen in conjunction with other candles or indicators.

They are synonymous with the fact that the market is losing strength and they are warning us of the weakness of the trend. The Japanese say of these figures that the market is running out of breath. There is a tie between bulls and bears and there is a balance between supply and demand.

These figures begin to have some importance in points of maximum trend, either bullish or bearish. If in the course of a prolonged uptrend and behind a white candle of some consideration, a spinning top appears, it means that the bulls have many difficulties to move forward. On the other hand, if a downtrend were to appear, a top would mean that the bearish begin to have problems in their advance.

Although we can not use these figures to make buying or selling decisions, if they can help us get on the track on Accumulations and / or Distributions. If we see that they are appearing without the market moving forward and with the help of technical indicators we can go looking for the possibility of whether there is accumulation in a bearish or good distribution trend in an uptrend.

example

Fuente: Manual of Austin power