What it is
The Spinning Top is a single-candle indecision pattern characterized by a small real body positioned in the middle of the candle's range, with upper and lower shadows of roughly equal length. Unlike a Doji where open equals close, the Spinning Top has a small but visible body.
The pattern gets its name from its resemblance to a child's spinning top toy - balanced in the center with extensions in both directions. The small body shows that neither buyers nor sellers gained decisive control during the session.
The psychology
The Spinning Top tells a story of market uncertainty. During the session, both buyers and sellers had their moments of control - price moved significantly higher AND significantly lower - but by the close, neither side had won decisively.
The equal shadows show that buying and selling pressure were balanced. The small body in the center represents the net result of this tug-of-war: essentially a draw. The market is unsure of its next direction.
When this appears after a strong trend, it's significant. A trend requires conviction; indecision suggests that conviction is fading. The Spinning Top is often an early warning that the current trend may be losing steam - though confirmation is needed to act on this signal.
Identification
- 01Small real body - Less than 1/3 of the total candle range
- 02Upper shadow present - At least as long as the body
- 03Lower shadow present - At least as long as the body
- 04Roughly equal shadows - Shadows approximately balanced
- 01After strong trend - More significant when momentum is fading
- 02Volume spike - High volume suggests meaningful indecision
- 03At key level - Support, resistance, or Fibonacci level
- 04Confirmation follows - Next candle breaks decisively
- 01Large body - Becomes a regular candle, not a Spinning Top
- 02Only one shadow - Becomes Hammer/Shooting Star type
- 03Very small range - Low volatility may be noise
- 04In consolidation - Less meaningful without prior trend
Execution framework
Wait for confirmation. The Spinning Top alone is not a trade signal - it's an early warning. Enter only when the next candle confirms direction by breaking the high (bullish) or low (bearish).
Place stop beyond the opposite extreme of the Spinning Top. If going long, stop below the low; if going short, stop above the high.
T1: Previous swing point in the direction of the new trend. T2: Key support/resistance level that acted previously.
Minimum 1:2 R:R required. Due to the wide range of Spinning Tops, ensure target justifies the stop distance.
Context matters
A Spinning Top's significance depends entirely on context. In a sideways market, it's just noise. After a strong trend at a key level, it can be an early warning of reversal.
- 01After extended trend at key support/resistance
- 02With high volume showing active participation
- 03At Fibonacci levels or psychological numbers
- 04With divergence on momentum indicators
- 05Following a series of strong directional candles
- 06Near moving average confluence
- 01In the middle of a range with no clear trend
- 02With very low volume (lack of interest)
- 03Multiple consecutive Spinning Tops (just choppy)
- 04Very small total range (no meaningful action)
- 05No nearby support/resistance reference
- 06In news-driven, erratic conditions
Multiple spinning tops in a row signal a market that's lost direction. Wait for a decisive candle before taking any position.
Compare the full pattern set
Use the library to compare similar structures before deciding what the chart is actually building.