Spinning Top Pattern: A Sign of Market Indecision

What is the Spinning Top Pattern?

The Spinning Top is a single-candle pattern that signals market indecision. It can appear during both uptrends and downtrends, indicating uncertainty among traders. 

Candle Formation – Small Body with Long Wicks

 
The candle has a small real body positioned between long upper and lower shadows. This structure reflects active price movement but no clear dominance by buyers or sellers. 

Market Psychology Behind the Pattern

 
During the session, both buyers and sellers push prices in opposite directions. However, the close remains near the opening price, signalling hesitation and potential trend exhaustion. 

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How Reliable Is It?

 
The Spinning Top is considered a neutral pattern. Its reliability increases when it forms near key support or resistance levels or after a strong price trend. 

Confirmation & Volume

 
Traders wait for the next candle to confirm direction. A strong bullish or bearish follow-up candle, supported by rising volume, strengthens the trading signal.

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