The candles of the pattern are ringed. An invented chart, drawn to show the shape. Not market data.
Also searched asspinning top candle · small body candle · indecision candlestick
How to recognise a spinning top
- A small body, but a real one: larger than a doji’s.
- Upper and lower wicks of similar length.
- The colour of the body matters little.
What it is taken to mean
Like the doji, it is read as indecision. After a run it suggests the run has slowed. In the middle of a range it suggests nothing at all.
What traders check next
- What came before: a run, or nothing in particular?
- The next candle’s close.
- Whether several small-bodied candles are appearing together, which is read as a market waiting for something.
Where people go wrong
- Giving a single small candle more meaning than it has.
- Confusing a quiet market with a turning one.
- Trading the wick ends as if they were levels.
Questions people ask
- Spinning top or doji?
- A doji has almost no body. A spinning top has a small one. Both are read as indecision.
- Is a spinning top a reversal pattern?
- No. It describes what buyers and sellers did during those candles. Studies of candlestick patterns find that, taken alone, they predict the next move only a little better than chance, if at all. It is one observation to weigh with others.
The words on this page
An explanation for study. It is not advice, a recommendation or a forecast, and a pattern or a situation described here says nothing certain about what a price will do next.