Doji & Spinning Tops
Overview
Doji and spinning top candles signal indecision between buyers and sellers. A doji has nearly identical open and close prices, while a spinning top has a small body with long wicks on both sides. These patterns are most significant at the end of extended trends where they can foreshadow reversals.
Key Concepts
Doji types (standard, long-legged, dragonfly, gravestone), Spinning top anatomy, Indecision interpretation, Confirmation requirements, Volume context
Entry Signals
Doji/spinning top after an extended trend, Confirmation candle in the opposite direction, Higher volume on the confirmation candle, Support/resistance confluence
Exit Signals
Close below the confirmation candle's low (for bearish reversal), Close above the confirmation candle's high (for bullish reversal), Time-based exit if no follow-through within 3 candles
Best Timeframes
All timeframes — most reliable on 4H, Daily, Weekly
Pro Tips
Never trade a doji in isolation — always wait for confirmation. Count how many candles are in the preceding trend to gauge exhaustion potential.
More Topics in This Category
Three-Line Strike Patterns
The three-line strike is a four-candle pattern where three consecutive candles move in one direction, followed by a single large candle that engulfs all three. Despite appearing as a reversal, statistical analysis shows the bullish three-line strike actually has a high probability of continuing the prior uptrend, making it a continuation signal. The bearish variant behaves similarly as a continuation of the downtrend.
Continuation Triangles
While not strictly a candlestick pattern, continuation triangles (ascending, descending, symmetrical) are multi-candle patterns where price contracts between converging trendlines. Breakouts from triangles tend to continue the prior trend. Triangles are measured-move patterns — the target equals the height of the triangle projected from the breakout point.
Engulfing Patterns
A bullish engulfing pattern occurs when a large green candle completely engulfs the prior red candle near the bottom of a trend. A bearish engulfing is the opposite — a large red candle swallows the prior green candle at the top. Engulfing patterns are among the most reliable two-candle reversal signals.
Abandoned Baby Pattern
The abandoned baby is a rare three-candle reversal pattern considered one of the most reliable candlestick signals. It forms when a doji gaps away from the preceding candle and the following candle gaps in the opposite direction, leaving the doji isolated with gaps on both sides. The pattern indicates a dramatic shift in market sentiment where momentum completely reverses between sessions.