WEBVTT 00:03.250 --> 00:09.260 This video going to take a look at how did you trade spinning tops pin bars and dodgy patterns. 00:09.310 --> 00:13.110 These are all very very similar candlesticks. 00:13.120 --> 00:16.560 The main difference I'll go ahead and draw them out now. 00:18.050 --> 00:21.260 Is that a spinning top has longer legs. 00:21.260 --> 00:33.780 It's basically a neutral candlestick a pin bar is more like this and a dozy is shorter. 00:33.840 --> 00:41.710 So these old tell different stories for example the pin bars showed signs of exhaustion in one particular 00:41.710 --> 00:53.260 direction the spinning top shows a wide range in indecision and the DOJ shows indecisive trading without 00:53.260 --> 00:54.240 a wide range. 00:54.280 --> 00:59.250 A lot of times you see a doze you when there are no driving factors in the market. 00:59.270 --> 01:01.300 It's just kind of listless. 01:01.300 --> 01:08.780 So the idea is that when you break the range of one of these candlesticks. 01:08.810 --> 01:19.130 So for example in the spinning top which is named as such because it looks like a spinning top the child's 01:19.130 --> 01:20.090 toy. 01:20.090 --> 01:26.120 But when we get a spinning top like this and you break down through it that shows that a lot of momentum 01:26.120 --> 01:34.010 has shifted because if you think about the line chart of that it's going to look something like that. 01:34.010 --> 01:39.360 And if you break the bottom of it we will have had to have seen a resumption of bearish pressure or 01:39.720 --> 01:46.380 bullish if we break the top of it so spinning top is a very interesting signal. 01:46.420 --> 01:51.910 The pin bars and these are called pin bars because they're like Pinocchio bars they have long noses 01:51.910 --> 01:52.750 and they lie. 01:52.780 --> 01:57.690 So what this means is with this candlestick you break the bottom of it. 01:59.060 --> 02:00.140 It's a cell signal. 02:00.140 --> 02:03.530 And the reason is as the buyers came in and then they failed. 02:03.530 --> 02:06.690 And then the next day or hour or whatever. 02:06.740 --> 02:09.300 Everybody in that candlestick is losing money. 02:09.620 --> 02:14.720 Just like if you have a pin bar in the other direction it's bullish. 02:14.720 --> 02:19.320 If we could break the top of it the dozy 02:22.360 --> 02:25.330 for my money a lot less reliable. 02:25.810 --> 02:30.650 Typically you want to stay in the trend but in theory you can trade it in both directions. 02:30.670 --> 02:34.160 Out of these candlesticks Dozier is by far the least reliable though. 02:34.180 --> 02:44.750 So let's take a look at a couple of examples in this trade here and we had a spinning top form because 02:44.750 --> 02:50.050 this got kind of long legs there and once we broke through the bottom of it we did in fact sell off. 02:50.050 --> 02:57.050 You would put your stop loss on the other side of the candlestick and your sell order at the bottom 02:57.120 --> 03:00.130 like once we break through that range. 03:00.320 --> 03:06.040 You can even make an argument for a couple of the spinning tops in a row. 03:06.050 --> 03:08.300 So that's an even more valid signal. 03:08.570 --> 03:17.550 If you think of it that way the pin bar and you'll learn about another candlestick formation called 03:17.580 --> 03:19.290 a hammer and a shooting star. 03:19.470 --> 03:23.690 Very similar but a pin bar has a very small body. 03:23.730 --> 03:26.580 Sometimes it's even completely flat like that. 03:26.580 --> 03:33.090 So during this candlestick people rallied and then we eventually broke down with everybody in that candlestick 03:33.090 --> 03:39.090 is losing money and you can see it leads to a pullback you enter on a break at the bottom. 03:39.120 --> 03:44.950 You put your stop loss on the other side of the candlestick and you just simply let it rip then finally 03:44.950 --> 03:54.480 a dozy you know a dodgy lot of times you'll see them on shorter timeframes. 03:54.490 --> 03:58.290 This is somewhat of a dozy that's a dozy. 03:58.280 --> 04:02.740 They're really not a lot of range and you can see that we did once to work below it. 04:02.740 --> 04:05.950 We did drift a little bit lower but it wasn't a very powerful move. 04:05.980 --> 04:09.210 So doses are typically quick hits if you will. 04:09.220 --> 04:15.070 Now if you're in an uptrend and you see a dozy break to the upside then that could be a continuation 04:15.070 --> 04:18.710 signal and that's generally the best way I have found to use them. 04:18.880 --> 04:23.380 This dose you hear being broken to the upside was a good sign showed that resistance got broke. 04:23.410 --> 04:25.130 This dose you hear etc.. 04:25.300 --> 04:28.930 So these are pretty standard and straightforward candles. 04:28.930 --> 04:33.000 Here is a pen bar here that broke down. 04:33.300 --> 04:37.870 And then of course the spinning tops that I had shown you previously. 04:37.870 --> 04:44.140 Now remember everything in trading means more when it's at support or resistance. 04:44.140 --> 04:53.560 So look to your support and resistance levels when trying to ascertain how to take the trade or whether 04:53.560 --> 04:56.920 it's something you should he be paying attention to. 04:57.160 --> 04:59.820 If you get a good resistance level and you have a spinning top. 04:59.820 --> 05:04.210 For example we break down below the bottom of it it makes sense to short the market.