Spinning Tops and High Waves candles, with their small real body, appear in a market where supply and demand are almost the same, it shows a lack of consensus among the traders.
Spinning Top
- Spinning tops show the indecision among traders
- The size of the real body shows the lack of consensus among traders to sustain the current trend
- Indicates an early sign of a possible shift in the current uptrend or downtrend
- Ignore in a trading range: price is pausing before breaking out
- The candle has a small real body of either color
- The size of the shadows is not important
- Caution is recommended when encountering such candles
High Wave
- High Wave candles show the confusion among traders
- The size of the real body shows the lack of consensus among traders to sustain the current trend
- Indicates an early sign of a possible shift in the current uptrend or downtrend
- The candle has a small real body of either color
- The size of both shadows are particularly long, but are not required to be the exact same length
- Ignore in a trading range: price is pausing before breaking out
- Caution is recommended when encountering such candles
- Long upper shadows imply selling pressure while long lower shadows imply buying pressure.
- A Paper Umbrella is a candle line with a small real body and a long lower shadow which appears at the high of a trading range.
- Hanging Man and Hammer candles are both Umbrella Lines.
