How Can You Trade The Spinning Top In An Uptrend

How Can You Trade The Spinning Top In An Uptrend

A spinning top when occurs in an uptrend looks a little different than how it would appear in a down trending market. Theuptrendmeans that the bulls are in control and when the spinning top occurs then this means that the situation could get slightly complicated.

This means that the bulls are not in control now or that with the spinning top being formed the bears have started to enter the market. Having seen this how do you place your trades when you use a spinning top pattern formation in an up trending market?

What does the spinning top infer?

The spinning top candlestick pattern means indecision in the market which means that neither the bulls nor the bears have any control in the market now. The bulls are now consolidating before they start another bullish move in the market. Or this could even mean that the bulls are giving way to the bears and thus this could signify a correction now. The chance of either of this event happening is equal and thus a trader will never be able to take a decision based on seeing the spinning top alone.

How should you place a trade in an up trending market?

The chances of both the events happening are equal and thus you have to take a chance now. You have to be prepared for both the outcomes. You may have brought the stocks earlier and this could be where you may want to book at least 50% of the profit. Here it could happen that the bears have taken control so at least in the 50% of stocks you got greet return. Else the bulls could make an entry here and thus you can keep riding on to the other 50% stocks that you hold and make additional profits on them.

The spinning top is an area of confusing where both the bulls and the bears are competing. It could be a continuation or a reversal at this stage. You need to be cautious before you place your trades here.

Doji

A doji Crypto CFD Trader is a trading software is similar to a spinning top but it does not have a body. This means that the open and the close price of the doji is the same and this gives you some information about the sentiments in the market. Doji is an important chart pattern.

The color of the candle is non-existent and if the body is really small even then it does not matter what the color of the candle is. The use of the doji is the same as the spinning top and this too like the spinning top indicates indecision.