THE SIGNAL

When a qualified topping or bottoming tail prints at major support or resistance, it signals exhaustion of one side and potential regime shift.

Wait for confirmation: break of structure, follow-through candle, or volume expansion.

A doji alone is not a signal — it is a warning that momentum is stalling.

CHANGES IN STRUCTURE
Topping Tail (Strict Criteria)

A topping tail is not just a long upper wick. The result is a long upper wick - 2x or more the body length - with a tiny real body near
the low and little or no lower wick. Appearing after an uptrend, it signals strong bearish rejection and a potential trend reversal. For it to matter:

• Forms at the high of the chart
• One of the largest candles in visible structure (range + wick)
• Prints on elevated volume
• Body closes in the bottom 25% of the entire candle range

That is expansion → rejection → distribution.

AI Generated Topping Tail

Bottoming Tail

Mirror image. A Bottoming Tail (also called a Hammer or Bullish Pin Bar) forms when price sells off sharply during the session but buyers push it back up, closing near the open. The result is a long lower wick - 2x or more the body length - with a tiny real body near the high and little or no upper wick. Appearing after a downtrend, it signals strong bullish rejection and a potential trend reversal.

• Forms at the low of the chart
• Structurally large candle
• Elevated volume
• Body closes in the top 25% of the range

That is capitulation → absorption → accumulation.

AI Generated Bottoming Tail

Doji

Open ≈ close.

It signals indecision and compression — especially powerful at structural extremes after expansion.

AI Generated Doji

Doji Candlestick: A Doji forms when the opening and closing prices are nearly equal, creating a cross or plus-sign shape. It signals market indecision — neither bulls nor bears control price. When appearing after a strong trend, a Doji can indicate a potential reversal.

- Claude

Until we trade again,
Vecta

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