TUTORIAL
Today's candle formed a Spinning Top. A Spinning Top is formed by a small real body with supper and lower shadows less than the length of the real body. By itself, a Spinning Top indicates a drifting market. Notice the Spinning Top's real body remains between Support and Resistance.
REFRESHER
The green Spinning Top that formed three days ago indicated the market a drifting. Based upon a drifting market I placed a Support line off the low of the Spinning Top and a Resistance line off the high. A breakout above the resistance line would then indicate the market is reversing upward and a breakdown below the support line would indicate the continuation of the downward trend.
TRADING
A breakout above Resistance would setup a Long Trade. A breakdown below Support would setup a Short Trade.
Today's candle formed a Spinning Top. A Spinning Top is formed by a small real body with supper and lower shadows less than the length of the real body. By itself, a Spinning Top indicates a drifting market. Notice the Spinning Top's real body remains between Support and Resistance.
REFRESHER
The green Spinning Top that formed three days ago indicated the market a drifting. Based upon a drifting market I placed a Support line off the low of the Spinning Top and a Resistance line off the high. A breakout above the resistance line would then indicate the market is reversing upward and a breakdown below the support line would indicate the continuation of the downward trend.
TRADING
A breakout above Resistance would setup a Long Trade. A breakdown below Support would setup a Short Trade.