It makes sense to read the charts and thus having full knowledge of candlestick patterns can help you make a good profit from the market. So, the candle in question is a spinning top candle which is basically a reversal candle. If it is formed at the top, we can see an end of the bullish trend and if it is formed at the bottom, we can see an end of the bearish trend.
A spinning top occurring at the peak of an uptrend can signify that the bullish is losing track and the trend is about to reverse. However, when a spinning top is at the base of a downtrend, it is a sign that the bearish is losing control, and the bullish may take control.
Have a look at Bank Nifty Future 5 min chart dated 06 Jan 2023 and you will notice that the Bank Nifty was in a downtrend and spotting the correct spinning top at the bottom helped us to encash the opportunity. On the closure of the spinning top candle, we executed the buy and returns were fantastic as thereafter it was a one-way ride. The requisite chart is appended below and do not forget to make a profit using our bank nifty options on a daily basis.
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