Top Highlights

• As a general rule, the order books cannot be trusted and do not accurately and consistently indicate the future movement of the asset.
• As a new trader, I suggest only working trade setups on the 4H and 1D time frames because, as I think you will see, the clearest and most reliable trade signals appear on these larger frames.
• Spinning tops appear frequently and show indecision in the market and a period where buyers and sellers each held a dominating position before losing it. Spinning tops appear commonly in times of consolidation, continuation, and reversal.
• A hammer indicates seller exhaustion and commonly signals reversal when it occurs during a downtrend.
• The inverted hammer can be useful as a buy signal and as a signal to the bears hinting they may be losing steam.