Trading Candles - Part 12
TUTORIAL
Friday's candle formed a Spinning Top. A Spinning Top is formed by a small real body with supper and lower shadows less than the length of the real body. By itself, a Spinning Top indicates a drifting market. However, this spinning top's lower shadow's low price was equal to the low price of the previous candle forming a Bullish Tweezer. A Bullish Tweezer is a trend reversal indicator.
TRADING
Trading this market "Long" based upon the Bullish Tweezer candle pattern would indicate a counter-trend trade since the major trend is downward.
Friday's candle formed a Spinning Top. A Spinning Top is formed by a small real body with supper and lower shadows less than the length of the real body. By itself, a Spinning Top indicates a drifting market. However, this spinning top's lower shadow's low price was equal to the low price of the previous candle forming a Bullish Tweezer. A Bullish Tweezer is a trend reversal indicator.
TRADING
Trading this market "Long" based upon the Bullish Tweezer candle pattern would indicate a counter-trend trade since the major trend is downward.
Note
Note: Since Friday's candle was a Spinning Top indicating a drifting market I would not put too much emphasis on the Bullish Tweezer reversal pattern. Since the Bulls do not have control of this market there is still a good chance this market could turn lower. To confirm a reversal upward I would want to see a confirmation candle showing the bull's in control before relying on a reversal upward.Note
When a Tweezer Top is formed between a Support and Resistance I want to see some confirmation that a reversal is occurring. However, when a Tweezer Top forms at or very close to a support level confirmation of a reversal is not necessary.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.