اسپننگ ٹاپ کینڈل اسٹک کیسے کام کرتی ہے؟

فاریکس ایک اتار چڑھاؤ کی مارکیٹ ہے جہاں چارٹ پر مختصر سی حرکت بھی ٹریڈ کو نمایاں طور پر متاثر کر سکتی ہے۔ ٹریڈرز کو چاہیے کہ وہ مارکیٹ کے رویے کا حقیقی وقت میں تجزیہ کرنے کے لیے قابل اعتماد ٹولز استعمال کریں جس سے کم از کم خطرہ ہو۔ اسپننگ ٹاپ کینڈل اسٹک مارکیٹ کے رجحانات کو ٹریک کرنے کے لیے موثر ترین کینڈلز میں سے ایک ہے۔

اسپننگ ٹاپ کینڈل اسٹک کیا ہے؟

اسپننگ ٹاپ کینڈل اسٹک ایک تکنیکی تجزیاتی پیٹرن ہے جو مارکیٹ کے غیر یقینی پن کو ظاہر کرتی ہے۔ اس کی بنیادی خصوصیات یہ ہیں:

• چھوٹا جسم۔ کینڈل کا جسم افتتاحی اور اختتامی قیمتوں کے درمیان فرق کو ظاہر کرتا ہے۔ اس کا مختصر سائز یہ بتاتا ہے کہ بیئرز اور بلز کا دباؤ تقریباً برابر ہے۔
• طویل سائے۔ کینڈل کے طویل اوپری اور نچلے سائے ہیں۔ یہ مخصوص ٹائم فریم کے دوران قیمت کی نمایاں تبدیلیوں کا سگنل دیتے ہیں۔
• غیر پیش بینی۔ اسپننگ ٹاپ کینڈل ممکنہ رجحان کی تبدیلی کا الارم دیتا ہے، جیسے کہ موجودہ رجحان میں کمی یا قیمت کی حرکت کی سمت میں ممکنہ تبدیلی۔

1. انٹری لیول
2. اسٹاپ لاس

دیگر تجزیاتی ٹولز کے ساتھ ملا کر، اسپننگ ٹاپ ٹریڈرز کو یہ سمجھنے میں مدد کر سکتا ہے کہ آیا ٹریڈ جاری رکھنی ہے یا پوزیشن کو بند کرنا ہے۔

اسپننگ ٹاپ کینڈل اسٹک کیسے کام کرتی ہے؟

مارکیٹ میں غیر یقینی کی صورت حال میں اسپننگ ٹاپ کینڈل اسٹک ظاہر ہوتی ہے، یعنی:

• ایک بڑے رجحان کے بعد، اگر اسپننگ ٹاپ کینڈل اسٹک کسی مضبوط رجحان (اوپر کی جانب یا نچلی جانب) کے بعد آتی ہے تو، یہ قیمت کی حرکت کی سمت میں ممکنہ تبدیلی کا اشارہ دیتی ہے۔ ٹریڈرز کے لیے، یہ موجودہ رجحان کے کمزور ہونے کا نشان ہے۔



• سپورٹ اور ریزسٹنس لیولز کے قریب۔ اگر اسپننگ ٹاپ کینڈل اسٹک سپورٹ اور ریزسٹنس کے لیولز کے قریب ظاہر ہوتی ہے تو، یہ ممکنہ استحکام یا رجحان کے پلٹاؤ کا اشارہ دیتی ہے۔ نیچے دی گئی مثال ریزسٹنس لیول پر اسپننگ ٹاپ ظاہر کر رہی ہے۔



• In a moment of uncertainty between the participants, if the Spinning Top candlestick occurs during the trading period, it indicates that both sides tried to control the price, but neither prevailed. For instance, during a bearish trend, there is uncertainty in the market or a slowdown of the bearish trend.

Difference between Spinning Top and Doji

In trading, both the Spinning Top and Doji are the candlestick patterns of technical analysis that signal market uncertainty. Despite the common goal they pursue, there are some differences in their structure and interpretation:

Before engaging in Forex trading, it's crucial to thoroughly understand the differences between the Spinning Top and Doji patterns. This knowledge will ensure that traders are well-informed and prepared to make sound decisions and execute successful transactions.

Pros and cons

The effectiveness of the trading strategy depends on how traders use it. Suppose you carefully analyse the context, apply it to confirmatory signals, and know how to manage risks. In that case, the Spinning Top candlestick pattern will bring you the following benefits:

• Early warnings about possible trend changes. For example, the appearance of a Spinning Top after a strong uptrend may signal that the current trend is losing its strength. That is, buyers are starting to lose control over the price. By looking at the chart, you can prepare for a possible reversal and devise a plan of action—to keep trading or close the position.
• The Spinning Top pattern is characterised by a small body and long shadows, making it easily recognisable on a chart. This simplicity in interpretation can give traders a sense of ease and confidence in their analysis.
• Clear volatility signals. Long shadows indicate the activity of buyers and sellers during a specific timeframe. This allows traders to understand how the market reacts to certain price levels—increases, stagnations, or decreases.

Unfortunately, beginners and inexperienced traders who use the pattern for the first time risk getting an inaccurate analysis due to several disadvantages of the method:

• Risk of false signals. High volatility and periodic market changes often force traders to enter or exit positions prematurely.
• Limited applicability. The Spinning Top pattern is effective in short-term trading. However, the market analysis results based on the chart from a long-term perspective may be unreliable, making the method less versatile for various trading strategies.
• Strong emotional impact. When the Spinning Top candlestick appears on the chart, traders get nervous, often forcing them to make emotional decisions rather than logical ones, which is very dangerous in trading, where everything is based on calculations.

Example

Imagine that on the daily chart of the GBPAUD currency pair, the market trend has been bullish over the past few days. However, the Spinning Top candlestick appeared on the chart on the day.

The candlestick has a small body and long upper and lower shadows, indicating significant price fluctuation during the day. Despite this, the closing and opening prices are almost equal. Here are the main characteristics of the candle:

• Opening price: 0.98421
• Closing price: 0.98943
• Long upper shadow: 0.99755
• Long lower shadow: 0.98074

Now, let's take a look at the pattern's interpretation:

• Long upper shadow. The long upper shadow indicates that sellers showed strong interest when the price reached 0.99755. At this level, there was an apparent resistance between the sides. The market was under sellers' pressure, so buyers couldn't keep the price above 0.99755.
• Long lower shadow. The long lower shadow shows sellers tried to lower the price to 0.98074 at the beginning of the day. Buyers joined the fight and pulled the price back to the opening level.
• Body. The small size of the candle's body indicates that the strengths of buyers and sellers were approximately equal during the day. The closing price of 0.98943 and the opening price of 0.98421 are almost identical.
• Continuous trend. Buyers are losing power since the Spinning Top candlestick appears after several days of an uptrend.

If the price continues to rise for several days, but the fluctuations are already visible on the chart, this may indicate an upcoming change in direction. There is a strong possibility of a trend reversal in the coming days.

What is the best timeframe to use for the Spinning Top candlestick?

Most experts say that the Spinning Top candlestick pattern works best in the timeframe of daily bars. This model is effective for several reasons:

• More accurate review. Daily candles display price movements for the whole day. This gives traders a detailed picture of the market sentiment and possible prospects for price movements in the near future.
• Instant reaction to any updates. Daily bars are inherently connected to news and events affecting the market. Any significant news flow that occurred during the day will be taken into account in the opening price and closing price.
• Reduced noise level. Lower time intervals (minute or hour charts) are subject to small price fluctuations, which may lead to false signals. On the daily charts, volatility is more smoothed.

However, it would help if you chose a suitable timeframe based on your trading strategy. Use weekly charts to identify significant market trends if you are a long-term trader.

Those who prefer intraday trading should turn to hourly charts since they can identify short-term signals more clearly.

A more versatile option is a four-hour chart. It provides enough information for analysis and is suitable for short—and medium-term trading.

Final thoughts

• A small body and long shadows characterise a Spinning Top candlestick pattern.
• It indicates market uncertainty, signalling potential trend reversals or consolidations. It is beneficial after significant price movements or near support and resistance levels.
• Both the Spinning Top and Doji signal uncertainty, but the latter often indicates stronger neutrality.
• The Spinning Top is praised for its straightforward interpretation and ability to signal volatility. However, you should remember the risk of false signals and avoid emotional decision-making.
• Forex trading requires a comprehensive approach to market analysis. Use the Spinning Top candlestick pattern along with other tools (support and resistance levels, MA, MACD, etc.) and create more effective trading strategies for successful transactions on an ongoing basis.