This again is a very simple concept. A Spinning Top Candlestick will have the following properties:
- The real body is small.
- The lower shadow is long.
- The upper shadow is long.
A Spinning Top Candle Stick will look like this
Meaning of Spinning Top
A spinning top shows indecision in market. It shows that once the trade opened, the Bulls and Bears tried to gain upper hand but failed and this resulted in final standoff after significant price fluctuations during which the Spinning Top was formed. These significant price fluctuations are represented by long shadows. If a Spinning Top appears after a long uptrend or a long Hollow or White Candlestick, it can mean a possible Bearish reversal. If a Spinning Top appears after a long downtrend or a long Filled or Black Candlestick, it can mean a possible Bullish reversal. Confirmation will be required for trading and traders can look for Gap Down or long Filled or Black Candlestick after Spinning Top appears at the top of an uptrend. This will tell them that the price will move in other direction. Similarly, if the Spinning Top appears at the bottom of a downtrend, the traders will look for Gap Up or a long Hollow or White Candlestick. This will confirm a Bullish reversal.