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Understanding The Spinning Top And Marubozu Candlestick Pattern

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Spinning Top candlestick pattern

The Spinning Top candlestick pattern has a single candle. It forms at the peak of an uptrend, the bottom of a downtrend, or in the middle of a trend. It can be a bearish or bullish candle.

It’s a small candlestick pattern. In this pattern, the stock prices open and close are near each other. This pattern forms when there’s indecision among the buyers and sellers in the uptrend, downtrend, or sideways trend. The pattern suggests a possible change in trend.

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When the Spinning Top pattern forms, traders must wait and see the next price movement. In an uptrend, if a bullish candle forms after the Spinning Top pattern at a support level, it could be used as an entry point. In an uptrend, if a bearish candle forms after the Spinning Top pattern at a resistance level, it could be used as an exit point. It’s advisable to use a combination of patterns and indicators to determine your trading strategy.

Marubozu candlestick pattern

The Marubozu candlestick pattern has a single candle. It forms anywhere in the trend. It can be a long and bearish candle. It can also be a long and bullish candle. For a bullish candle, the open and low are approximately equal. The high and close are also approximately equal for a bullish candle. In contrast, the open and high are approximately equal for a bearish candle. The close and low are also approximately equal for a bearish candle.

The above chart shows a sample entry and exit signal using the Marubozu candlestick pattern.

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In the Marubozu pattern, a bullish candle forms when buyers push the price higher. A bearish candle forms when the sellers push the price lower. When a bullish candle forms at the support of an uptrend, it can be used as an entry point. When a bearish candle forms at resistance, it can be used as an exit point. It’s advisable to use a combination of patterns and indicators to determine your trading strategy.

Key stocks with these patterns

Recently, we’ve seen the Marubozu pattern in Altisource Asset Management Corporation (AAMC), AAON Inc. (AAON), and Acacia Research Corporation (ACTG). In contrast, American Assets Trust Inc. (AAT) and Amgen Inc. (AMGN) are showing the Spinning Top pattern.

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