Did you ever play with spinning tops as a child? Simple but amusing, these tiny toys have existed since antiquity. If they’re spun precisely and very quickly, they remain balanced on their tips due to inertia. In the world of Japanese candlesticks, spinning tops were the inspiration for the naming of the Spinning Top candlestick pattern. Similar in shape to its toy counterpart, with a short body and two long wicks, the Spinning Top is a common but important candlestick signal. To learn more about this unostentatious candlestick, please scroll down . . .
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Do you have an umbrella handy? When dark clouds are on the horizon, you know that a downpour could soon be on the way. Similarly, when you spot the Dark Cloud Cover pattern on a Japanese candlestick chart, you need to anticipate the arrival of a bearish reversal. This candlestick pattern is somewhat easy to spot because its formation clearly reflects its name: at the end of an uptrend (i.e., a sunny day), a black candle appears (a “dark cloud”), heralding a reversal. Let’s learn a little more about this ominous signal . . .
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