I’m currently following the online course of the school of pipsology and have gotten to the page which describes Japanese Candlestick formation patterns.
As one can see, there are seperate descriptions for Spinning Top and Doji formations. What is the real difference between the two? I can only think of the Doji having the exact same opening and closing price, while with the Spinning Top the price might have altered slightly throughout the session.
Thanks in advance!
Don’t get caught up in the details with candlestick prints. The main message the market is communicating to you with either of these prints, is that [B]the market is consolidating[/B], at least temporarily.
But remember, Candlestick prints are only useful when you understand the context in which they are being printed.
I found an example to show you. This is from an hourly chart of GBP/USD. Note the strong move up before the Doji print…
Thanks a lot for being so helpful!
A true doji looks like an elongated plus sign. No body really to speak if.
A spinning top, or bottom, will have a body.
They both mean relatively the same thing. But don’t fall into the mistake of trading every one of them.
Look for price to be at a place where it turned in the past, or at the extremes of a trend line or channel, or at fib retracement points. Confluence is your best friend.