Spinning Top Candlestick Pattern (Bullish & Bearish) Explained
🔍 What is a Spinning Top Candlestick?
A Spinning Top is a single candlestick pattern that indicates market indecision. It has a small real body and long upper and lower shadows. This pattern suggests that buyers and sellers were active, but neither could gain full control during the trading session.
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🛠 Key Characteristics:
- Small real body (difference between open and close is minimal)
- Long upper and lower shadows
- Occurs in uptrend, downtrend, or sideways market
📈 What Does It Mean?
The Spinning Top reflects uncertainty in the market. Traders are undecided on whether the price should move up or down. When this pattern forms after a strong trend, it may signal that the trend is losing strength and a reversal or consolidation may occur.
✅ Signal Depends on Market Context:
- After an uptrend: Possible bearish reversal
- After a downtrend: Possible bullish reversal
- In sideways market: May signal continuation
🖼️ Image: Bullish and Bearish Spinning Top
The image below shows the two types of Spinning Top candlesticks: Bullish and Bearish.
📝 Interpretation:
- Bullish Spinning Top: Appears after a downtrend, shows a potential reversal to the upside.
- Bearish Spinning Top: Appears after an uptrend, shows potential reversal to the downside.
🎯 How to Trade a Spinning Top
Traders should never trade solely on a Spinning Top. Always wait for a confirmation candle before entering a position.
Trading Tips:
- Combine with volume, trendlines, or support/resistance levels.
- Use technical indicators like RSI or MACD for confirmation.
- Watch the candle that follows — it gives the real signal.
📌 Summary Table
| Type | Appears In | Market Signal |
|---|---|---|
| Bullish Spinning Top | After Downtrend | Potential Bullish Reversal |
| Bearish Spinning Top | After Uptrend | Potential Bearish Reversal |
📢 Final Thoughts
The Spinning Top may seem like a small candle, but it carries a powerful message: indecision. When spotted at key points in a trend, and combined with other signals, it can help you time your trades better and reduce risk.
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