How to Trade the Spinning Top Candlestick Pattern


This makes them a valuable addition to any spinning top candlestickr’s repertoire. A Tweezer Top is a bearish reversal pattern seen at the top of uptrends and consists of two Japanese candlesticks with matching tops. So when spotting a Spinning Top candlestick pattern, look for a single candlestick with a short body between two long shadows.

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However, to verify the prediction, as aforementioned, the candle that comes next after the spinning top candlestick is crucial in confirming the new trend direction. When a crypto asset closes at a slightly higher price than it opened, this forms a bullish spinning top candlestick as a mild buying activity has taken place. However, a trader needs to apply technical indicators and signals to analyze the trading movements. Such an analysis will protect the trader from straying away from the trading pattern and stick within the risk management plan. It means that a spinning top may alert about an upcoming crucial change in a trend. However, a confirmation from the next candle is key to determine whether the prices will drop after the uptrend.

Frequency of Spinning Top candlestick pattern

We have found it to sometimes lead to a swing reversal, but just as frequently the swing does not reverse. Even if this candle has a white candle body, it is a very bearish signal because of the long upper shadow. A spinning top, black or white, at resistance is a bearish signal, and a spinning top, black or white, at support is a bullish signal.


Therefore, a spinning topper is often confused with a doji pattern. The only difference between the two is that the Doji pattern opens and closes at the same point. Another difference is that the doji is typically a sign of reversal. When it happens, it sends a signal that price will reversal.

How a Spinning Top candlestick pattern is formed?

These spinning tops suggest that there is indecision among the bulls and the bears. After the second spinning top, a bearish candlestick appears and signals that the decision has been made; the bears are in charge and the bears successfully begin a move downward. A spinning top candlestick has a small real body along with an upper shadow and a lower shadow as shown in the figure below. Trading the spinning top candlesticks can be profitable, but it requires patience and discipline to wait for confirmation before entering trades.

This light volume eating into a gap with a fat volume candle above increased the likelihood of the stock rolling over and that’s exactly what happened. In short, these candles show both price movement but also incorporate volume which determines the width of the candle. Another method that works nicely is the combination of using volume candles to identify when a trend is set to change. So, if you spot one on a chart, it’s likely just a breather in a broader continuation. A short black candle differs from a spinning top by the shadow length. Black spinning top candles that appear within a third of the yearly low perform best — page 696.

Spinning Tops Candlestick Chart Example

This article is a trader’s guide to spinning top candlestick. However, in reality, even if a wafer-thin body appears, it is acceptable. If the traders intend to buy, he is better off buying only half the quantity, and he should wait for the markets to make a move. Spinning top at the top end of the rally indicates that either the bulls are pausing before they can resume the uptrend further or the bears are preparing to break the trend. If the trader intends to buy, he is better off buying only half the quantity, and he should wait for the markets to move in his direction.

I saw a great trade example that I had to share with you guys; we are going to walk through how to day trade a bull trap. As many of you know, Valeant Pharmaceuticals has had a downward death… There is no right or wrong answer; it just comes down to how you calculate your risk and reward on each trade. In the above example of the stock KOS, the stock developed a spinning top after a strong move on the open. If you are not familiar with volume candles, please check out our article here.

bulls and bears

It means you may be dealing with a higher risk in comparison to the expected reward. So the next time you see either a Spinning top or a Doji individually or in a cluster, remember there is indecision in the market. The market could swing either way, and you need to build a stance that adapts to the expected movement in the market. However keeping in mind the 2nd rule, i.e. ‘be flexible, verify and quantify’ even if there is a wafer-thin body, the candle can be considered a Doji. Today, were going to cover another low float parabolic stock, OPTT. There have been many of these types of trades in the last couple weeks.

Conversely, in a downtrend, the appearance of Spinning Top tells that sellers are losing interest, and there is a possibility of an upward movement of the price. With this bearish setup example, a sell order was placed a few pips below the red confirmation candle’s low and a stop-loss order was placed a few pips above the spinning top’s high. A target was again placed at a level that offered double the reward versus the risk taken on this trade setup. Bullish Spinning Top Candlestick Pattern IllustrationThe bullish spinning top is a frequently occurring one-bar candlestick pattern that supposedly represents indecision.

It shows that neither buyers or sellers are in control and that the market is deciding on its next move. A spinning top occurring at the peak of an uptrend can signify that the bullish is losing track and the trend is about to reverse. However, when a spinning top is at the base of a downtrend, it is a sign that the bearish is losing control, and the bullish may take control. Our final two chart images show the same spinning top forex patterns that appeared during a bullish trend. Trading the spinning top candlestick pattern involves waiting for confirmation of a potential trend reversal or consolidation period in the market. Once we get more information, we can combine bullish or bearish candlestick patterns with technical indicators and trade with more confidence.

What does a spinning top tell traders?

On the other, the spinning top is usually a sign of uncertainty or indecision in the market. Our gain and loss percentage calculator quickly tells you the percentage of your account balance that you have won or lost. Find the approximate amount of currency units to buy or sell so you can control your maximum risk per position.


If it breaks the hi of friday, we can fly and if it breaks the low of friday we can dump. USDTRY BULL prive movement prediction ready i believe that . USDTRY mine own perspective so what’s your consideration on the price movement please comment in the below section . US30 has been a steady uptrend, insight on scenarios to expect.

Definition of Spinning Top Candlestick Pattern

The pattern displays indecision, with many possible sideways movements to be witnessed. When it comes to the speed we execute your trades, no expense is spared. ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates. Increase your income and get compensated for your trading knowledge with ThinkInvest, putting you in control.

The psychology behind the pattern is what occurs on any given day. Because the open and close price points are very near to one another, the color of the candle does not really matter. It could be a green or a red candle, what actually matters is the fact that the open prices and close prices are near to one another. In the short term, may see more downside before next push up. Overall longer term Bias is bullish, however slightly over bought and bearish spinning top showing market uncertainty on Friday’s close. Hoping for a little dip to add to my Oct $12.50 call position.

candlestick pattern –

Keep in mind that with this type of forex spinning candlestick pattern, you can practice trading with a proper demo account where you can open and close positions risk-free. When looking for a reversal, in this case, it would be signified as a green spinning top candlestick which would indicate that the bulls or buyers are back in control. Candlestick patterns are a great way to assess market sentiment at a glance. While they aren’t very reliable on their own, many traders use them to confirm other technical indicators or chart patterns and tilt the odds in their favor.