The spinning top is a candlestick pattern that indicates indecision in the market. It consists of a small body with upper and lower shadows that are roughly the same length. This pattern suggests that neither buyers nor sellers are in control of the market. It can occur during a period of consolidation or at the end of a trend.
The spinning top pattern is a candlestick and has a short real body between long upper and lower shadows that is centered vertically. The candlestick pattern is a symbol of uncertainty regarding the asset’s future course. It implies that neither sellers nor purchasers could take the initiative. Traders perceive this candlestick pattern as neutral, similar to a Doji pattern, although many of these patterns result in reversals.
When buyers and sellers push prices higher and lower respectively over a certain length of time. The candlestick pattern is created when the closing price ultimately closes to the open. If the pattern is confirmed by the subsequent candle, it may show a possible market reversal following a big price increase or decrease. The close of a spinning top is always near to the open, regardless of whether it closes above or below the open.
Understanding the Spinning Top Candlestick
- You have to consider an actual spinning top when you consider the candlestick pattern.
- When spinning, you Can not predict when it will stop or which way it will fall when it stops spinning.
- The candlestick pattern is a symbol of uncertainty.
- The buyers or sellers have no control.
- However, at one time during the session, both the sellers and the purchasers were in the lead, as seen by the extended shadows on the top and bottom. Because of this uncertainty, it is difficult to predict where the market will go next.
- The candlestick pattern is just neutral and neither bullish nor bearish.
