DXY Phantom Strength.While I'm making this analysis Public, its purpose is really just a 'fun' project for myself to take a look back over time to see how (if) accurate it turns out to be.
what does the DXY yrTF 'tell' me?
1) the CCi has been making strong bullish moves (+100) away from the average price... while price has been printing LH's.
2) 2007 has been the only year (since 1980) with a CCi -100 Bear Push (& only just) & price printed a LL!
In other words, attempts of strength by the DXY results in an actual show of Weakness (LH's)?
While this has been sustained over decades, in my mind... DXY 'strength' DOES NOT RING TRUE.
3) While 2022 broke above the last LH of 16/17 (Off the HL of 2020...creating an up trend?)... yearly price has not closed above the 16/17 LH.
4) AND Price is still inside the 01/08 Bear Push Range.
REMEMBERING This is a Yearly Time Frame and therefore a VERY long term analysis, it seems to me the DXY is ultimately going to Dump.
5) Short Term However, I think a move to the yrWkZ of 2002 is still possible, if not likely. $115.00 ish.
Candlestick Analysis
How Can You Use a Spinning Top Candlestick Pattern in Trading?How Can You Use a Spinning Top Candlestick Pattern in Trading?
The spinning top candle is a key tool in technical analysis, highlighting moments of market indecision. This article explores what spinning tops represent, how they differ from similar patterns, and how traders can interpret them to refine their strategies across various market conditions.
What Does a Spinning Top Candlestick Mean?
A spinning top is a candlestick pattern frequently used in technical analysis. It consists of one candle with a small body and long upper and lower shadows of approximately equal length. The candle’s body symbolises the discrepancy between the opening and closing prices during a specified time period, while the shadows indicate that volatility was high and neither bulls nor bears could take control of the market.
This pattern signifies market indecision, where neither buyers nor sellers have gained dominance. It suggests a state of equilibrium between supply and demand, with the price oscillating within a narrow range. The spinning top may indicate continued sideways movement, particularly if it appears within an established range. However, if it forms after a bullish or bearish trend, it could signal a potential price reversal. Traders always look for additional signals from confirming patterns or indicators to determine the possible market direction.
It’s important to note that the spinning top candle is neutral and can be either bullish or bearish depending on its context within the price chart. The colour of the candle is not important.
Spinning Top vs Doji
Doji and spinning top candlesticks can be confused as they have similar characteristics. However, the latter has a small body and upper and lower shadows of approximately equal lengths. It indicates market indecision, suggesting a balance between buyers and sellers without a clear dominant force. Traders interpret it as a potential reversal signal, reflecting a possible change in the prevailing trend.
The doji candlestick, on the other hand, has a small body, where the opening and closing prices are very close or equal, resulting in a cross-like shape. If it’s a long-legged doji, it may also have long upper and lower shadows. A doji candle also represents market indecision but with a focus on the relationship between the opening and closing prices. Doji patterns indicate that buyers and sellers are in equilibrium, and a potential trend reversal or continuation may occur.
How Do Traders Use the Spinning Top Pattern?
Traders often incorporate the spinning top candle pattern into their analysis as a way to interpret moments of market indecision. Whether the pattern appears during a trend or at key turning points, its context plays a significant role in shaping trading decisions.
In the Middle of a Trend
When a spinning top forms in the middle of an ongoing trend, traders often view it as a signal of potential market hesitation. This indecision can indicate a pause in momentum, suggesting either a continuation of the trend or the possibility of a reversal.
Entry
In such cases, traders typically wait for confirmation of the next price move. A break above the high of the spinning top may signal the trend will continue upward, while a break below the low could suggest the trend may move down. Observing how subsequent candles interact with the spinning top can help a trader gauge the market’s intentions.
Take Profit
Profit targets might be aligned with key price levels visible on the chart, such as recent highs or lows. For traders expecting trend continuation, these targets might extend further, while those anticipating a reversal might aim for closer levels.
Stop Loss
Stop-loss orders might be set in accordance with the risk-reward ratio. This placement helps account for the pattern's characteristic volatility while potentially protecting against unexpected movements.
At the Top or Bottom of a Trend
When a spinning top forms at a significant peak or trough, it often draws attention as a potential reversal signal. This appearance may reflect market uncertainty after a prolonged uptrend or downtrend.
Entry
Confirmation from subsequent price action is critical. Traders typically observe if the price breaks above the candle (bullish spinning top) or below the candle (bearish spinning top) to determine the likelihood of a reversal.
Take Profit
Targets could be set at major support or resistance zones. A trader expecting a reversal may look for levels reached during the previous trend.
Stop Loss
Stops could be placed in accordance with the risk-reward ratio, allowing for the volatility often present at trend-turning points while potentially mitigating losses.
Remember, trading decisions should not solely rely on this formation. It's crucial to consider additional technical indicators, market trends, and risk management principles when executing trades.
Live Example
In the EURUSD chart above, the red spinning top candle appears at the bottom of a downtrend. A trader went long on the closing of the bullish candle that followed the spinning top. A take-profit target was placed at the closest resistance level, and a stop-loss was placed below the low of the spinning top candlestick.
There is another bearish spinning top candlestick pattern on the right. It formed in a solid downtrend; therefore, a trader could use it as a signal of a trend continuation and open a sell position after the next candle closed below the lower shadow of the spinning top candle.
A Spinning Top Candle: Benefits and Drawbacks
The spinning top candlestick pattern offers valuable insights into market indecision, but like any tool in technical analysis, it has its strengths and limitations. Understanding these might help traders use it more effectively.
Benefits
- Identifies Market Indecision: Highlights moments where neither buyers nor sellers dominate, providing a clue about potential price reversals or continuations.
- Versatile Across Trends and Markets: Can signal price consolidation, continuation, or reversal depending on its context. It’s also possible to use the spinning top across stocks, currencies, and commodities.
- Quick Visual Insight: The distinctive shape makes it easy to spot on charts without extensive analysis.
Drawbacks
- Requires Confirmation: On its own, the pattern lacks particular signals, needing additional indicators or price action for confirmation.
- Context-Dependent: Its reliability depends heavily on where it forms in the trend, making it less useful in isolation.
- Prone to False Signals: Market noise can produce spinning tops that do not lead to meaningful movements, increasing the risk of misinterpretation.
Takeaway
The spinning top candlestick reflects market indecision and suggests a potential reversal or consolidation. Traders use this pattern as a tool to identify areas of uncertainty in the market. Therefore, it's important to consider the spinning top pattern within the broader context and get confirmation from other analysis tools.
If you want to test your spinning top candlestick trading strategy or apply it to a live chart, open an FXOpen account and start trading with tight spreads from 0.0 pips and low commissions from $1.50. Good luck!
FAQ
What Is a Black Spinning Top?
A black (red) spinning top is a variation of the spinning top candlestick pattern with a small body and equal-length shadows. This is different from the white (green) spinning top, as its body indicates a lower closing price. Traders analyse its context, technical factors, and confirmation from other indicators to interpret its significance.
What Is a Spinning Top Candlestick?
A spinning top candle meaning refers to a pattern characterised by a small body and long upper and lower shadows of roughly equal length. It reflects market indecision, where neither buyers nor sellers hold a clear advantage, and is often used in technical analysis to assess potential trend reversals or consolidations.
Is the Spinning Top Bullish or Bearish?
The spinning top candlestick pattern is neutral by nature. Its significance depends on the context within the price chart. When it appears at the end of an uptrend, it may signal a bearish sentiment, while at the end of a downtrend, it can indicate a potential bullish reversal.
What Does a Spinning Top Candle Indicate?
This pattern indicates a period of indecision and balance between buying and selling pressure. Depending on its position within a trend, it can signal consolidation, continuation, or a reversal in price direction.
What Is the Spinning Top Rule?
There is no fixed "rule" for spinning top trading. Traders typically look for confirmation from subsequent price movements or other technical indicators to decide on a course of action.
Is Spinning Top a Doji?
Although similar, spinning tops and doji candles differ. A spinning top has a small body with visible discrepancies between opening and closing prices, whereas a doji’s body is almost non-existent.
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Gold Outlook: Bearish Pressure ContinuesYesterday, Gold once again rebounded from the newly formed support around 2890. However, after reaching the 2920 resistance zone, the price started to decline again.
While the daily candle on the chart appears as a Doji, signaling indecision, overnight price action suggests renewed downside pressure, testing support once more.
The overall chart structure and price action indicate that this support level is likely to break. In my view, even the older technical support at 2880 may not hold.
🔹 Trading Strategy:
✅ Focus on selling rallies, with confirmation below support.
✅ Negation of the bearish bias only occurs if Gold moves above 2920 resistance.
✅ Target: A deeper correction towards 2850.
Stay disciplined and trade wisely! 📉
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
GOLD, NAS, & BTC Daily Overview: Whole Market BleedingDXY is fundamentally bullish but this recent bearish retrace has allowed us to put risk on for a few weeks but the last few sessions have been hungry for correction.
We all know that before we can continue to rally, it will be wise to allow the market to collect more supporters at better pricing. This alongside inefficient price delivery zones will make easy targets for sellside revisit market wide.
Bearish momentum gaining tractionMarket Analysis:
The current market structure is unfolding with clarity, exhibiting a familiar technical pattern. The price action initiated with a consolidation phase, characteristic of accumulation, followed by a bearish rally to the order block at 0.81400. This rally successfully broke the previous higher high, transitioning into a manipulation phase.
Subsequently, bearish momentum gained traction, reaching the swing low and executing a slight liquidity sweep. The price then marginally rebounded to respect the immediate internal supply zone at 0.81600. A significant rejection occurred at this supply zone, culminating in the clearance of the swing low and resulting in displacement.
Given this shift, the market is anticipated to reverse to the upside, facilitating a liquidity sweep and mitigation of the fair value gap. This final lag of the technique is expected to provide a bearish entry for the distribution phase, targeting the rejection block.
Trade Setup:
- Entry: 0.81700
- Stop Loss: 20 pips at 0.81900
- Target: 100 pips at 0.80700
BTC/USDT 30M Chart🔹 Asset: Bitcoin (BTC/USDT Perpetual Futures)
🔹 Timeframe: 30M (30-Minutes)
🔹 Exchange: MEXC
📊 Market Overview:
BTC remains in a strong downtrend, respecting a descending trendline. Recent price action suggests a potential short-term reversal or pullback, contingent on bullish confirmation at the marked reversal area.
📉 Key Technical Insights:
✅ Lower Highs & Trendline Resistance: BTC is struggling to break above a key diagonal resistance, reinforcing the bearish structure.
✅ Reversal Area: A key demand zone has been identified around $83,500 - $83,000, where buyers may step in.
✅ Candle Confirmation Needed: A bullish engulfing or hammer candlestick formation in the reversal area could signal a pullback towards $84,500 - $85,000.
📌 Potential Trade Scenarios:
🔻 Bearish Continuation: If BTC fails to hold the reversal area, further downside towards $82,500 or lower is likely.
🔺 Short-term Bullish Reversal: A confirmed bullish candlestick formation could push BTC back to $85,000, where sellers might re-enter.
📢 Final Thoughts:
BTC is in a downtrend, but a temporary relief rally is possible if strong bullish confirmation appears at the support zone. Traders should wait for price action signals before entering.
🔔 Stay alert and manage risk wisely! 🚀
The bears haven’t gone away, continuing to short gold!Bros, I want to say that 2868 is definitely not the lowest point at the current stage, and the bears have not stopped roaring. After gold falls below 2970, market panic will lead to deep selling, which will drive gold prices further down.
So the bears have not left yet, and any rebound is an opportunity to short gold. As the center of gravity of gold prices moves down, the current resistance has moved down to the 2895-2905 zone again. If gold remains below this area, I think gold is likely to move towards the 2840-2830 zone next!
Bros, profits are the ultimate goal in trading. Accumulating profits is what changes lives and destinies. Choosing wisely is far more important than just working hard. If you want to replicate trade signals and earn stable profits, or if you want to deeply learn the correct trading logic and techniques, you can consider joining the channel at the bottom of this article!
Are You Ready to Cash In BIG!Crude oil prices are approaching a major buying zone, and this could be your golden opportunity to enter the market before the next big move 💰 Are we about witness a massive rally? In this Chart I'll Break down key technical levels, market analysis, and trading strategies to help you capitalize on this setup.
Your Ultimate destination for insights into Forex, Commodities, and Cryptocurrency trading. With over a decade of experience (FX Insight Hub) and his team focus on empowering traders through price action strategies, money Management, and trading psychology the essential pillars of success in today's market's.
GBPUSD LONGMarket structure bullish on HTFs 3
Entry at both Daily And Weekly AOi
Weekly Rejection at AOi
Daily Rejection at AOi
Previous Daily Structure Point
Around Psychological Level 1.26000
H4 Candlestick rejection
Rejection from Previous structure
Levels 7.05
Entry 105%
REMEMBER : Trading is a Game Of Probability
: Manage Your Risk
: Be Patient
: Every Moment Is Unique
: Rinse, Wash, Repeat!
: Christ is King
GBPJPY: Ready to Climb HigherGBPJPY had been consolidating in a sideways range for about a week before witnessing a strong bullish breakout today. This surge has turned the pair bullish.
On the 4-hour chart, the price successfully broke above a key resistance level within the range, supported by a strong momentum candle.
With this breakout, further upside movement is expected, with potential targets at 190.48 and 190.98.
GBPJPY: Time to Grow HigherGBPJPY had been trading in a sideways pattern for around a week before experiencing a bullish surge today. This upward movement caused the pair to become bullish.
The price successfully broke above a resistance level within the range on a 4-hour chart, with the help of a strong momentum candle.
As a result, we can anticipate further bullish movement in the near future, with potential targets at 190.48 and 190.98.
Continue to short gold after the reboundAfter sideways consolidation, gold chose to move downward again, and the current situation and direction are very clear. 2956 has basically been confirmed as the current stage high, so in the New York trading session, we only need to find the right time and point to short gold.
However, although the decline of gold just now was strong, it still seemed a little hesitant when facing the low point last night. There is still a certain support in the intraday, and the gold price will more or less rebound. The resistance area above is the 2915-2925 zone, so I will short gold with the resistance of this area, and gold will definitely touch the 2880-2870 zone or even lower during this round of decline.
Bros, profits are the ultimate goal in trading. Accumulating profits is what changes lives and destinies. Choosing wisely is far more important than just working hard. If you want to replicate trade signals and earn stable profits, or if you want to deeply learn the correct trading logic and techniques, you can consider joining the channel at the bottom of this article!
BITCOIN - $88,000 PERFECT DELIVERY! *LATE UPLOAD*I'm absolutely gutted I could not upload this post before the new weeks candle.
Due to technical difficulties, I had to re-upload 2 hours worth of work whilst having a jam packed weekend.
If upload was made on Sunday, my bias would be short. But due to the current circumstances, I must be neutral as $88,000 weekly equilibrium has been delivered.
Sitting on my hands awaiting for the next run.
GBP/USD - Pound Pummels Dollar!With three consecutive weeks of bullish price action, we have seen the impact it's had on the Dollar index, sliding to new weekly lows. If this continues, we can expect the continuation of GBPUSD to run up into the 1.27000 region.
We have seen the successful delivery of bullish price action last week. When will this run end?