The Ultimate Guide to Tower Top Candlestick Patterns

Last updated: January 4, 2024

Tower Top Pattern

Tower candlestick patterns occur when two large real candle bodies brace the sides of multiple smaller real bodies, marking a top or a bottom in price. In a tower top pattern, multiple small real candlesticks are seen in between two large real candlestick bodies.

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General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes tower top patterns with the following characteristics:

Typical characteristics

• Two candlesticks of opposing colors with large real bodies occurring on the sides of multiple other candles with small real bodies
• Tower top candlestick patterns occur at high prices

Examples of use as a trading indicator

• After completion of the pattern, the stock may have ascended or descended in price significantly so the stock may be in an overbought or oversold state after the pattern completes.

Other interpretations

• Similar to the spike (V) reversal in Western technical analysis.

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!