This video going to take a look at how did you trade spinning tops pin bars and dodgy patterns.
These are all very very similar candlesticks.
The main difference I'll go ahead and draw them out now.
Is that a spinning top has longer legs.
It's basically a neutral candlestick a pin bar is more like this and a dozy is shorter.
So these old tell different stories for example the pin bars showed signs of exhaustion in one particular
direction the spinning top shows a wide range in indecision and the DOJ shows indecisive trading without
a wide range.
A lot of times you see a doze you when there are no driving factors in the market.
It's just kind of listless.
So the idea is that when you break the range of one of these candlesticks.
So for example in the spinning top which is named as such because it looks like a spinning top the child's
toy.
But when we get a spinning top like this and you break down through it that shows that a lot of momentum
has shifted because if you think about the line chart of that it's going to look something like that.
And if you break the bottom of it we will have had to have seen a resumption of bearish pressure or
bullish if we break the top of it so spinning top is a very interesting signal.
The pin bars and these are called pin bars because they're like Pinocchio bars they have long noses
and they lie.
So what this means is with this candlestick you break the bottom of it.
It's a cell signal.
And the reason is as the buyers came in and then they failed.
And then the next day or hour or whatever.
Everybody in that candlestick is losing money.
Just like if you have a pin bar in the other direction it's bullish.
If we could break the top of it the dozy
for my money a lot less reliable.
Typically you want to stay in the trend but in theory you can trade it in both directions.
Out of these candlesticks Dozier is by far the least reliable though.
So let's take a look at a couple of examples in this trade here and we had a spinning top form because
this got kind of long legs there and once we broke through the bottom of it we did in fact sell off.
You would put your stop loss on the other side of the candlestick and your sell order at the bottom
like once we break through that range.
You can even make an argument for a couple of the spinning tops in a row.
So that's an even more valid signal.
If you think of it that way the pin bar and you'll learn about another candlestick formation called
a hammer and a shooting star.
Very similar but a pin bar has a very small body.
Sometimes it's even completely flat like that.
So during this candlestick people rallied and then we eventually broke down with everybody in that candlestick
is losing money and you can see it leads to a pullback you enter on a break at the bottom.
You put your stop loss on the other side of the candlestick and you just simply let it rip then finally
a dozy you know a dodgy lot of times you'll see them on shorter timeframes.
This is somewhat of a dozy that's a dozy.
They're really not a lot of range and you can see that we did once to work below it.
We did drift a little bit lower but it wasn't a very powerful move.
So doses are typically quick hits if you will.
Now if you're in an uptrend and you see a dozy break to the upside then that could be a continuation
signal and that's generally the best way I have found to use them.
This dose you hear being broken to the upside was a good sign showed that resistance got broke.
This dose you hear etc..
So these are pretty standard and straightforward candles.
Here is a pen bar here that broke down.
And then of course the spinning tops that I had shown you previously.
Now remember everything in trading means more when it's at support or resistance.
So look to your support and resistance levels when trying to ascertain how to take the trade or whether
it's something you should he be paying attention to.
If you get a good resistance level and you have a spinning top.
For example we break down below the bottom of it it makes sense to short the market.