The dumpling top (see Exhibit 6.53) usually has small real bodies as the market forms a convex pattern. When the market gaps down, confirmation of a dumpling top occurs. This pattern is the same as the Western rounded bottom top. The dumpling top should have a downside window as proof of a top.
The fry pan bottom (see Exhibit 6.54) reflects a market which is bottoming and whose price action forms a concave design and then a window to the upside opens. It has the same appearance as a Western rounded bottom, but the Japanese fry pan bottom should have a window in an upmove in order to confirm the bottom.
The rounding top and the small real bodies as the market tops out is indicative of dumpling top as seen in Exhibit 6.55. Note how the doji was at the peak of the market with the downside window helping to confirm the dumpling top pattern. The fact the black candlestick after the window was a black belt-hold line was another reason for a bearish outlook. Exhibit 6.56 shows a fry pan bottom whose low points on April 27 and 28 formed a harami pattern. A window in early May substantiated that a fry pan bottom had been put into place.
Exhibit 6.57 illustrates a nicely shaped fry pan bottom. The bullish confirmation came at candlestick 2. Although the market did not form a window between candlestick 1 stick 1 was $1,000 and the low and 2, the fact that the high for candle for candlestick 2 was $997 meant it only missed being a window by 4 ticks. In addition, candlestick 2 was a very strong white belt-hold line.