Spinning Top Candle
Quick Definition
A candlestick pattern with a small body and long upper and lower shadows, indicating market indecision between buyers and sellers.
Key Takeaways
- Spinning tops have small bodies with long, roughly equal upper and lower shadows
- They signal market indecision — neither buyers nor sellers have clear control
- Context matters: after a trend, they warn of potential exhaustion and reversal
- Multiple consecutive spinning tops often precede significant directional moves
What Is Spinning Top Candle?
The spinning top is a candlestick pattern characterized by a small real body positioned between relatively long upper and lower shadows of roughly equal length. This formation indicates that during the trading period, both buyers and sellers were active and pushed prices significantly in both directions, but ultimately the session closed near where it opened. The spinning top signals indecision and a potential loss of momentum in the current trend. When appearing after a sustained uptrend, it suggests buyers are losing conviction and a reversal might follow. When appearing after a downtrend, it suggests selling pressure is diminishing. The spinning top is similar to a doji but has a slightly larger body. On its own, it is a neutral pattern — its significance comes from context: where it appears in a trend, the volume accompanying it, and the candles that follow it. Multiple spinning tops in succession amplify the indecision signal and often precede significant directional moves or breakouts.
Spinning Top Candle Example
- 1After five consecutive bullish candles, a spinning top appears with equal-length shadows — the next day's candle will reveal whether buyers or sellers have taken control.
- 2A series of spinning tops near a resistance level suggests the market is undecided, often followed by either a breakout or reversal.
Related Terms
Doji
A candlestick pattern where the opening and closing prices are virtually equal, creating a cross-like shape that signals market indecision and a potential trend reversal.
Hammer
A bullish reversal candlestick pattern with a small body near the top and a long lower shadow, appearing at the bottom of downtrends.
Hanging Man
A bearish reversal candlestick pattern identical in shape to a hammer but appearing at the top of uptrends, warning of potential selling pressure.
Candlestick Chart
A chart type showing open, high, low, and close prices for each period, with color-coded bodies indicating direction.
Consolidation
A period where a security's price trades within a defined range after a significant move, as the market digests gains or losses before the next directional move.
Moving Average
A calculation that averages a security's price over a specific number of periods, smoothing price data to identify trends.
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