Introduction to candlestick strategy.
Candlestick with a long upper shadow, long lower shadow and small real body are called spinning tops. Spinning tops represent indecision.
The small real body {whether red or green} show little movement from open to close, and the shadow indicate that both bull (green) and bear (red) were active during the session.
Even though the session opened and closed with little change, price moved significantly higher and lower in the meantime. Neither buyer nor seller could gain the upper hand and the result was a stand off.
NOTE:-
1: After a long advance or long green candlestick, a spinning top indicates weakness among the bull and a potential change or interruption in the trend.
2: After a long decline or long black candlestick, a spinning top indicates weakness among the bears and a potential change or interruption in trend.
DOJI
Doji are important candlestick that provide information on their own and as components in a number of important patterns. Doji form when a candlestick open and close are virtually equal.
The length of the upper and lower shadow can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral pattern. Any bullish or bearish bias is based on preceding price and future confirmation.
Doji convey a sense of indecision or tug of war between buyers {green} and seller {red}. While a doji with and equal open and close would be considered more robust, it is more important to capture the essence of candlestick.
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