Something Spinny?
Friday, 28 January 2022
Spinning Tops And Their Types:
Hello mate,
How are you doing? Well, did you ever feel something spinny in the graph?
No? Then let's have a look.
Spinning Tops: The spinning tops are the type of formations mostly used to detect a trend reversal. Whether it is bullish or bearish they detect each one very accurately. So, do you want to know the rules by which they work? Let's find out.
Types of Spinning Tops:
1. Bullish Spinningtop:
In this formation, both sides of the wick should be equal approximately. In case, you ever see a candle like this then assume it to be a trend reversal.
Confirmation: Whenever the next candle present after the spinning top makes its close above the high of the spinning top then the formation is telling us clearly about a bullish signal.
Let's Know Something About Candlestick Duration:
For Intraday: 10-30 minutes
For Options: 1-5 minutes
Stoploss: Low spinning top
Target: Wait for the next trend reversal.
2. Bearish Spinningtop:
In this formation, the characteristics of the wick are the same as in the Bullish Spinning top, both sides should be approximately equal. And whenever it happens on a graph, it may give a trend reversal to us.
Confirmation: When the candle after spinning top makes its close under spinning top's low. Then it appears to be a Bearish Signal.
Candlestick's Duration:
For Intraday: 10-30 minutes
For Options: 1-5 minutes
Stoploss: High of Spinning Top
Target: Wait for the next trend reversal.
To be noted: Whether it is red or it is green, the candle's colour does not participate in the formation of the bearish or bullish signal.
Thank You,
