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Written by Sarah Abbas
Fact checked by Antonio Di Giacomo
Updated 16 May 2025
A Spinning Top candlestick is a chart pattern characterized by a small body and long upper and lower wicks. It shows that the market opened and closed at nearly the same price, but there was significant movement in both directions during the session. This pattern often reflects uncertainty or indecision between buyers and sellers.
In this article, we’ll explore what the spinning top candlestick means, how to identify it, and how traders can use it as part of a broader strategy.
A spinning top candlestick reflects market indecision, marked by a small body and long upper and lower wicks.
A spinning top candlestick interpretation depends on trend context and requires confirmation from subsequent price action or technical indicators.
For effective use, combine spinning tops with market structure analysis, supporting indicators (e.g., RSI, MACD), and confirmation patterns.
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A spinning top candlestick is a type of single-candle pattern that represents market indecision. It features a small real body located in the center of the candlestick, with long upper and lower shadows of roughly equal length on both sides. This shape indicates that prices moved significantly higher and lower during the trading period, but eventually settled near the opening level.
Key Characteristics:
Small real body: The open and close prices are very close, showing that neither buyers nor sellers gained full control.
Long wicks/shadows: The market tested both higher and lower levels before returning to the midpoint.
Neutral signal: On its own, the spinning top does not indicate a clear direction but instead suggests hesitation.
The spinning top is often seen at points of potential trend reversal or pause. However, it must be analyzed in context, whether it appears in an uptrend, downtrend, or during sideways market movement, before making trading decisions.
The spinning top candlestick has a distinct structure that reflects a moment of uncertainty in the market. It shows that both buyers and sellers were active during the trading session, but neither side was able to take full control.
At the center of the spinning top candlestick is a small real body, which means that the opening and closing prices are very close to each other. This suggests that despite price movement throughout the session, the market ultimately settled near its starting point. The small body highlights the lack of clear direction.
The upper and lower shadows (wicks) extend far above and below the body and are typically of similar length. This indicates that:
Buyers pushed the price higher,
Sellers pushed the price lower,
But neither side maintained control by the close.
This back-and-forth movement without a clear winner reflects indecision and market balance.
Although spinning tops are generally neutral, they can appear in two slight variations depending on the relationship between the opening and closing prices:
The spinning top candlestick is not a signal to act on its own. It’s a clue. Its true meaning depends heavily on where it appears in a trend and what follows after. Traders interpret this pattern as a sign that momentum is weakening and that the current direction may be about to pause, reverse, or consolidate.
Here’s how to break it down:
When a spinning top forms after a series of bullish candles, it can signal that buyers are losing strength. The long upper and lower shadows suggest that bulls tried to push the price higher, but bears managed to push it back down before the end of the day.
Interpretation:
A pause or temporary consolidation in the trend
An early warning of a potential trend reversal
A sign that buyers are becoming hesitant
If a bearish candle follows, it may confirm that sellers are gaining control.
In a downtrend, a spinning top can indicate that sellers are losing momentum. Although bears push the price lower, bulls manage to recover lost ground, closing the session near the opening price.
Selling pressure is weakening
The downtrend might be slowing or nearing exhaustion
A potential bullish reversal is developing
A bullish confirmation candle may support a possible trend reversal.
When the spinning top appears during a range-bound or sideways market, it typically reinforces the existing indecision. Neither side is in control, and the pattern often reflects low momentum.
Market remains neutral
Traders are waiting for new information.
No actionable signal unless a breakout occurs.
The spinning top and the doji candlestick are both candlestick patterns that signal market indecision, but they differ slightly in structure and meaning.
Key Differences:
Feature
Spinning Top
Doji
Real Body
Small, but visible (open ≠ close)
Nearly invisible (open ≈ close)
Wicks
Long upper and lower shadows
Varying shadow lengths
Market Signal
Indecision with slight momentum
Pure indecision or balance
Spinning Top: Suggests hesitation after price movement, buyers and sellers both tried to take control.
Doji: Reflects complete uncertainty, neither side had an advantage.
A spinning top candlestick can be a powerful signal when combined with technical indicators.
On its own, it reflects market indecision, but when aligned with tools like RSI, MACD, or Fibonacci retracement, it can reveal high-probability trading setups.
When a spinning top forms near key RSI thresholds (typically 70 for overbought or 30 for oversold), it can signal a potential reversal backed by momentum exhaustion.
If RSI is above 70 and a spinning top forms after a bullish rally, this suggests weakening buyer strength and a possible bearish reversal.
If RSI is below 30 and a spinning top forms in a downtrend, this could hint at fading selling pressure and an upcoming bullish bounce.
Confirm the signal with a divergence or RSI crossing back below/above the 70 or 30 line.
The MACD indicator helps assess the strength and direction of a trend. A spinning top becomes more meaningful when MACD is flattening out or crossing over:
A spinning top forming as the MACD line crosses below the signal line can reinforce a bearish reversal, especially after a strong uptrend.
If the spinning top appears during a MACD histogram contraction, it may indicate that the current momentum is losing steam and a shift is near.
Use MACD to confirm the spinning top’s signal; avoid acting on either in isolation.
Fibonacci retracement levels (like 38.2%, 50%, 61.8%) often act as natural support or resistance. When a spinning top appears around one of these levels, it can provide a confluence point for reversal trades.
In a downtrend, a spinning top forming at a 61.8% retracement level can suggest a possible bullish reversal.
In an uptrend, if a spinning top shows up near the 38.2% level after a pullback, it may indicate hesitation and potential continuation or reversal if confirmed.
Use a candle close after the spinning top to confirm direction. Place stop loss above/below the high/low of the pattern, and target the next retracement or extension level.
Even though the spinning top pattern is easy to recognize, it’s often misunderstood or misused. Here are the key pitfalls traders should watch out for:
The spinning top reflects indecision, not direction. Acting solely on this candle without waiting for confirmation can lead to false entries. Always wait for the next candle to validate the signal.
Candles like the doji, hammer, or inverted hammer may resemble spinning tops but carry different meanings. Carefully check the body size and shadow symmetry before labeling the candle.
A spinning top's significance depends on where it appears in the trend. Without understanding the market context, such as trend direction, support/resistance zones, or indicator signals, you risk misreading its intent.
To get the most out of the spinning top candlestick, it’s essential to apply it within a structured trading approach. Here are some best practices:
Use spinning tops on higher timeframes (4H, daily, weekly) for stronger signals
Always place the pattern within broader market structure (support/resistance, trendlines, Fibonacci levels)
Combine with confirmation candlestick patterns before entering a trade
Pair with technical indicators like RSI, MACD, or volume for added context
Look for spinning tops after strong trends where momentum may be weakening
The spinning top candlestick is a clear visual representation of indecision in the market. With its small body and long shadows, it signals that both buyers and sellers were active, but neither side could take control. On its own, the pattern doesn't offer a definitive direction, but when placed in context and supported by confirmation signals, it becomes a helpful part of broader market analysis.
Interpreting the spinning top correctly requires attention to trend conditions, technical levels, and supporting indicators like RSI, MACD, or Fibonacci retracement. Traders should also be cautious not to act on the pattern alone and avoid mistaking it for similar candles.
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Yes, spinning tops can form on charts of all tradable assets, forex, stocks, commodities, indices, and cryptocurrencies, as long as price data is displayed in candlestick format.
While spinning tops can be spotted on any timeframe, higher timeframes (like 4H, daily, or weekly charts) tend to produce more reliable signals due to reduced market noise.
It can act as either, depending on the context. In a strong trend, it may signal a brief pause or slowdown. Near key support/resistance levels, it may suggest a potential reversal, especially if followed by confirmation.
A spinning top formed with high volume can carry more weight, indicating that many participants were involved in the indecision. Conversely, low volume may suggest weak conviction behind the price action.
Yes, but only when combined with other tools. For entry, traders often wait for confirmation in the next candle. For exit, it may serve as a warning to tighten stops or take partial profits if momentum is stalling.
They tend to be more meaningful after strong trends, whether at tops or bottoms. A spinning top after an extended move can signal potential exhaustion, but it needs confirmation to validate a reversal or continuation.
SEO content writer
Sarah Abbas is an SEO content writer with close to two years of experience creating educational content on finance and trading. Sarah brings a unique approach by combining creativity with clarity, transforming complex concepts into content that's easy to grasp.
Market Analyst
Antonio Di Giacomo studied at the Bessières School of Accounting in Paris, France, as well as at the Instituto Tecnológico Autónomo de México (ITAM). He has experience in technical analysis of financial markets, focusing on price action and fundamental analysis. After many years in the financial markets, he now prefers to share his knowledge with future traders and explain this excellent business to them.
This written/visual material is comprised of personal opinions and ideas and may not reflect those of the Company. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. XS, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same. Our platform may not offer all the products or services mentioned.
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