For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyse now the following Candlestick Pattern: “Tower Top Pattern”.
– Normally it should be a signal of reversal of the current Trend.
– You can find it in the variants: Top and Bottom, depending on the Trend in which is located.
Tower Top Pattern
– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.
– The First Candle is long and white.
– The next Candles that are in the “Sideways” Phase, are Spinning Tops (Black or white) and they show the indecision of the Market.
– The Last Candle is long and black, that is the start of the reversal of the current Trend.