A candlestick with a small body centered between relatively long upper and lower wicks. It signals indecision, with neither buyers nor sellers controlling the session.
What Is a Spinning Top?
A spinning top candlestick has a small real body positioned roughly in the middle of the candle, with upper and lower shadows that are both relatively long. The body can be green or red. Unlike a Doji where the body is nearly nonexistent, a spinning top has a visible (though small) body.
The pattern shows that both buyers and sellers were active during the session, pushing price in both directions, but neither side achieved a decisive victory.
What It Signals
In an Uptrend, a spinning top warns that bullish conviction is fading. In a Downtrend, it suggests sellers may be losing control. In both cases, the pattern indicates a period of indecision that could precede a reversal or simply a pause.
On a EUR/USD daily chart, a spinning top after several strong bullish candles is worth noting, especially near Resistance. However, the spinning top itself does not confirm a reversal. Traders wait for the next candle to establish direction.
Spinning Top vs. Doji
The distinction is subtle. A doji has virtually no body, while a spinning top has a small but visible body. Both signal indecision. In practice, many traders treat them similarly and focus on the surrounding price action and key levels rather than debating the exact classification.
Related Terms
Doji
A candlestick where the open and close are virtually equal, forming a cross or plus shape. It signals market indecision and a potential reversal.
Long-Legged Doji
A doji with very long upper and lower wicks, showing extreme indecision as the price swung widely in both directions before closing near the open.
Consolidation
A period where the price moves sideways within a defined range after a trending move, as the market pauses before the next directional move.
Harami
A two-candle pattern where a small candle's body fits entirely within the prior large candle's body. A bullish harami appears in a downtrend and a bearish harami in an uptrend.
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