The Spinning Top is a single candlestick pattern that shows indecision between buyers and sellers. It has a small body and long upper and lower shadows (wicks). Traders use it to identify possible pauses, reversals or continuation signals depending on context.

Figure 1 — Spinning Top example (replace image with your chart). Click images to enlarge.

What is a Spinning Top?

A Spinning Top is a candlestick with:

• A small real body (small difference between open and close)
• Relatively long upper and lower shadows
• Appearance of market indecision — neither bulls nor bears clearly control price

Visual characteristics

The small body may be slightly bullish (white/green) or bearish (black/red). The significance of the spinning top depends heavily on where it happens: at the end of trends, inside consolidation, or near support/resistance levels.

Psychology behind the pattern

Long wicks show both buyers and sellers pushed price away from the open, but the market closed near the open. That struggle indicates uncertainty. After a strong uptrend, it can show the trend losing momentum; after a downtrend, buyers may be attempting to step in.

How traders use Spinning Top candles

Common uses include:

• Trend continuation: inside a trend, it may simply be a pause before the next move.
• Reversal potential: at key highs/lows, it can signal a possible reversal when confirmed by subsequent price action.
• Consolidation confirmation: multiple spinning tops in a row indicate market indecision and a likely range-bound phase.

Entry & Exit Rules (practical trading strategy)

Aggressive approach (for experienced traders)

Some traders will fade the recent momentum immediately by entering against the prior trend when a spinning top appears at an extreme. This is higher risk and should only be used with small position sizes.

Examples & variations

Look for confirmation patterns:

• Spinning top + bearish engulfing next candle: stronger reversal signal
• Spinning top inside a Doji cluster: stronger evidence of indecision
• Spinning top near Fibonacci levels or moving averages: higher relevance

Risk management & position sizing

A spinning top is an early sign, not a guarantee. Always:

• Use a defined stop-loss; never trade without one.
• Limit risk per trade (commonly 0.5–2% of trading capital).
• Consider volatility — wide wicks require wider stops and smaller position sizes.

Practical checklist before taking a spinning-top trade

1. Is the pattern at a logical price level? (support/resistance, trendline)
2. Is there volume confirmation? (low volume = weak signal)
3. Does a higher timeframe show a compatible bias?
4. Is the risk:reward acceptable after placing stops/targets?

Common mistakes to avoid

• Trading spinning tops in isolation — always seek confirmation.
• Using fixed pip stops without accounting for current volatility.
• Overleveraging because the candle looks “promising”.

Sample annotated HTML snippet (for sharing on your blog)

<figure><img src="IMAGE_URL_EXAMPLE" alt="spinning top"><figcaption>Spinning Top after a trend</figcaption></figure>

Further reading & tools

Combine spinning top analysis with:

• Support/Resistance zones
• Volume profile / On-balance volume
• Higher timeframe trend confirmation (4H/1D)

Closing thoughts

The Spinning Top is a low-risk, high-information candle when used properly. It tells you the market temporarily lacks conviction — and that pause can be your edge if you wait for clean confirmation and respect risk controls.

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