What is a White Spinning Top Candlestick?
White spinning top is a type of candlestick where the open and close are very close to each other and we have upper and lower shadow. They have small body with almost equal shadows.
Underlying Psychology of White Spinning Top
There were many market participants buying and selling the underlying stock at any price during the session and due to this continuous buying/selling price couldn’t move in any direction and closed just above the open price.white spinning top represent the indecision in market where bulls have slight upper hand.
Example of How to Use White Spinning Top
How to Trade White Spinning Top
Decision: Since white spinning top are neutral,traders should wait for market direction. If price breaks decisively upward,they should buy and if price breaks downward,they should start looking for selling opportunities.
Stop loss: If its a buy then low of candle will act as stop-loss. In case of sell , high of candle will act as stop-loss.
Main Points to Consider
- If white spinning top appears after a uptrend,at resistance or after a long white Maburozu candle, it potentially act bearish candle.
- If white spinning appears after a downtrend,at support or after a long black Maburozu candle, it potentially act as bullish candle.
Beginner in candlestick? checkout below
- Shooting star candlestick pattern and how to use is for trading.
- Hammer candlestick pattern and how to use it for trading.
- Long legged doji candlestick pattern and how to use it for trading.
- Gravestone doji candlestick and how to use it for trading.
All the math you need in the stock market you get in the fourth grade.Peter Lynch