The small candles represent a period of low volatility.
The Window or gap is key to this pattern.
A Window or gap is a space between the real bodies of 2 candles where shadows
do not overlap in any way.
Dumpling Top
- Bearish reversal pattern
- Looks similar to the Rounding Top price pattern
- Pattern is shaped in a convex manner
- Appears at the end of an uptrend
- Price holds new high with a series of candles with small bodies
- Small candles can be spinning tops and doji of either color
- They show the confusion of the market at this point
- Price gaps down with a long bearish candle confirming the pattern
- The gap down or Falling Window now acts as resistance
Frypan Bottom
- Bullish reversal pattern
- Looks similar to the Rounding Bottom price pattern
- Pattern is shaped in a convex manner
- Appears at the end of a downtrend
- Price holds new lows with a series of candles with small bodies
- Small candles can be spinning tops and doji of either color
- They show the confusion of the market at this point
- Price gaps up with a long bullish candle confirming the pattern
- The gap up or Rising Window now acts as support
