Spinning tops are depicted with small bodies relative to their shadows. These show the indecision on the part of the Bulls and bass players. They are considered neutral when trading is in a wobbly market. However, in a trendy or oscillating market, a relatively good general rule is that in the coming days, trading will probably move in the direction of the opening price. The size of the shadow is not so important that the size of the body for the formation of a spinning top.
Japanese candle patterns are clear and easy to identify, demonstrating highly accurate changes in investor confidence. The Japanese sail patterns are made up of approximately 40 investments patterns of continuation of which all have a credible probability of indicating the future and correct direction of the price movement. However, the 12 largest patterns of Japanese candles offer more than enough operating situations for most investors. There are only 12 major patterns that must be memorized but this does not mean that secondary patterns should not be considered.
In fact, these signals are extremely effective for the production of profits. However, it is shown that some of them do not often occur. To use the analysis of the Japanese candles to the maximum, all patterns including spinning top should be used and understood.
The 12 patterns of Japanese candles illustrate most of the signs. The definition of "major" means two things. First, they happen many times in price movement so it benefits the production of profitable operations. Second, they clearly indicate price investments with sufficient force to ensure the placement of an operation. The 12 largest patterns of Japanese candles are listed below and as you can see each sailing formation has a unique name. Some have Japanese names and some have English names.
The 12 largest patterns of Japanese candles are: Doji, Bullish engulfing, Bearish engulfing, Hammer signal and hanging Man, piercing Pattern, Dark Cloud Cover, Bullish Harami, Bearish Harami, Morning star, Evening star, kicker signals (bass and bull), shooting Star, and inverted Hammer.
Recognizing and understanding the psychology that forms spinning top and Japanese sail patterns will provide completely new perspectives for investors to understand the optimal times of buying and selling. The Japanese rice traders have realized that this price does not move based on fundamentals but moves based on the perception of the investor of these fundamentals the signal Doji is one of the most predominant investment indicators. It is very effective in all time periods if you use graphics for one minute, 5 minutes, or 15 minutes, for one-day trading charts, daily, weekly, monthly for amateur traders and long-term investors.
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