Types of confused Japanese Candlesticks – Lesson 6

1 – Doji candlesticks patterns:

Description of Doji: they are candles without body , so the open price equally to the close price , it has upper shadows and lower ones regardless the length of these shadows or even which of them is longer or shorter of the other ( upper and lower) , and the main rule between Doji candles is in the close price place , is it in the third upper part of Doji length ( it mean that it is optimistic candle) , or it is in the third lower part of Doji length ( this means it is Pessimistic candle) or the close price place is in the third middle part of Doji length ( it means confused candle) .

We can see set of Doji candles in the following pictures:

Doji candles are considered from the confused candlesticks because the close of the candle came in the same level of open price , the analyst said that no one resolve the battle for his part completely , although both of the buyers and sellers have achieved profits in this round because of emergence the upper and lower shadows , if the Doji was long started from the highest price to the lowest one , the technical analyst calls it ( Long-Legged Doji) , or if the length of Doji was shot , the analyst calls it ( short-legged Doji) , so from the picture up you can see the situation expressed by the four Doji candles.

They called it confused because it appears before the announcement of important economic news, thus the activity of traders stop before the announcement of news in waiting and watching the results of economic news to continue their deals.

2 –Spinning Tops patterns:

There are other shapes of confused Japanese candlesticks, but it enters in its components the body factor and shadows factor.

By the way these candles mentioned to the confused situation of the market and it called (spinning tops patterns). Spindle is an old tool for spinning wool, cotton, hemp and linen to make them threaded It is a spike wooden heavily either at the top or in the middle or at the bottom in the form of an oval or circular (rotary) and were used with other tool called cob spindle.

Note in Spinning tops patterns that candle body colors may be red or may be blue and body size of these candles may differ between long , medium and short , as we note the presence of two basic conditions to form this type of candlestick , the first condition , namely that the length of the upper shadow should be equal to the length of the lower shadow and the second condition that the blue candles must be closed in the upper third part of the candle , and red candles closes in the third lower part of the candle , as shown in the illustration below, these candles are very useful in technical analysis , and can reviewed in the following basic shapes. 

   

Assuming that the time period for this open candle has ended and the candle closed on the images above, this set of Japanese candles fall under the classification of a named group of Spinning Top Candlesticks , it comes in tow colors as we said before red and blue , so we called them Red spinning tops or blue spinning tops.