Spinning Top Chart Pattern
The Spinning Top is a single candlestick pattern. Its shape is a small body with upper and lower shadows that have a greater length than the body's length.
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The explanation is that the market moves higher and then sharply lower, or vice versa. It then closes above the opening price creating a white body. This represents complete indecision between the bulls and the bears. The actual length of the shadows is not important. The small body relative to the shadows is what makes the spinning top.
If a White Spinning Top is observed after a long rally or a long white candlestick, this implies weakness among the bulls and it is a warning about a potential change or interruption in trend.
If a White Spinning Top is observed after a long decline or a long black candlestick, this implies weakness among the bears and it is a warning about a potential change or interruption in trend
Like most other single candlestick patterns, the White Spinning Top has low reliability. It reflects only one day's trading and can be interpreted both as a continuation and a reversal pattern. This candlestick needs to be used with other candlesticks for a healthier confirmation of a trend. |
