Spinning Top

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DEFINITION of 'Spinning Top'

A type of candlestick formation where the real body is small despite a wide range of price movement throughout the trading day. This candle is often regarded as neutral and used to signal indecision about the future direction of the underlying asset.

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INVESTOPEDIA EXPLAINS 'Spinning Top'

If a spinning top formation is found after a prolonged uptrend, it suggests that the bulls are losing interest in the stock and that a reversal may be in the cards. On the other hand, if this formation is found in an defined downtrend, it suggests that the sellers are losing conviction and that a bottom may be forming.

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RELATED FAQS
  1. How are Spinning Top patterns interpreted by analysts and traders?

    Discover the spinning top candlestick pattern and understand its significance and how it is commonly interpreted by traders ...
  2. How do I implement a forex strategy when spotting a Spinning Top Pattern?

    Learn a simple forex breakout trading strategy that can be implemented when a trader identifies a spinning top candlestick ...
  3. How effective is creating trade entries after spotting a Spinning Top pattern?

    Understand the significance of the spinning top candlestick pattern and learn how to create more effective trade entries ...
  4. How do I build a profitable strategy when spotting a Spinning Top pattern?

    Learn a simple, low-risk trading strategy that can be employed when a spinning top candlestick forms under certain circumstances ...
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