Spinning Top Candlestick: Meaning, Examples & How to Use It

What Is a Spinning Top Candlestick?

A spinning top candlestick is a neutral candlestick pattern that reflects market indecision. It forms when the open and close prices are very close, creating a small real body, while both the upper and lower wicks stretch noticeably in each direction.

This structure shows that buyers pushed prices up and sellers pushed them down, yet neither side managed to dominate.

Because it highlights hesitation in momentum, the spinning top candlestick pattern becomes meaningful when it appears after a strong move or near key price levels. Traders use it as an early signal to reassess trend strength, anticipate pauses, or prepare for potential reversals once a confirmation candle appears.

How the Spinning Top Candle Forms

The spinning top candlestick shows that both buyers and sellers were active during the trading session, but neither side was able to take full control.

Small Real Body

At the center of the spinning top candlestick is a small real body, which means that the opening and closing prices are very close to each other. This suggests that despite price movement throughout the session, the market ultimately settled near its starting point. The small body highlights the lack of clear direction.

Upper and Lower Shadows of Similar Length

The upper and lower shadows (wicks) extend far above and below the body and are typically of similar length. This indicates that:

• Buyers pushed the price higher,

• Sellers pushed the price lower,

• But neither side maintained control by the close.

This back-and-forth movement without a clear winner reflects indecision and market balance.

Bullish vs. Bearish Spinning Top (With Examples)

Although spinning tops are generally neutral, they can appear in two slight variations depending on the relationship between the opening and closing prices:

• Bullish Spinning Top: The candle closes slightly above the open. This variation still shows indecision but suggests that buyers had a small upper hand by the end of the session. It may carry more weight if it forms after a downtrend, hinting at possible reversal or a pause before recovery.
  • Example: Price dips intraday, buyers push it back up, and the candle closes slightly higher.

• Bearish Spinning Top: The candle closes slightly below the open. Here, sellers had marginal control, but not enough to establish a clear trend. If it appears after an uptrend, it could signal weakening bullish momentum or a potential shift.
  • Example: Buyers try to lift price, sellers step in later, and the candle finishes slightly lower.

What a Spinning Top Means in Different Market Trends

The spinning top candlestick is not a signal to act on its own. It’s a clue. Its true meaning depends heavily on where it appears in a trend and what follows after. Traders interpret this pattern as a sign that momentum is weakening and that the current direction may be about to pause, reverse, or consolidate.

Here’s how to break it down:

In an Uptrend

When a spinning top forms after a series of bullish candles, it can signal that buyers are losing strength. The long upper and lower shadows suggest that bulls tried to push the price higher, but bears managed to push it back down before the end of the day.

If a bearish candle follows, it may confirm that sellers are gaining control.

In a Downtrend

In a downtrend, a spinning top can indicate that sellers are losing momentum. Although bears push the price lower, bulls manage to recover lost ground, closing the session near the opening price.

A bullish confirmation candle may support a possible trend reversal.

In a Sideways Market

When the spinning top appears during a range-bound or sideways market, it typically reinforces the existing indecision. Neither side is in control, and the pattern often reflects low momentum.

Spinning Top vs. Doji: Key Differences Traders Must Know

The spinning top and the doji candlestick are both candlestick patterns that signal market indecision, but they differ slightly in structure and meaning.

Key Differences:

• Spinning Top: Suggests hesitation after price movement, buyers and sellers both tried to take control.

• Doji: Reflects complete uncertainty, neither side had an advantage.

How to Use the Spinning Top Pattern in Trading

A spinning top trading strategy focuses on reading market hesitation and pairing it with structure. On its own, the pattern is neutral, so traders use it as a signal to slow down, reassess momentum, and wait for confirmation before acting.

Use Spinning Tops Near Support/Resistance

The pattern becomes more meaningful when it forms at key levels. At support, it can hint that selling pressure is fading; at resistance, it can show buyers are struggling to push higher.

Use With Trend Context

Always interpret the candle within the broader market structure. A spinning top in the direction of the prevailing trend is usually just a pause, while one that appears against the trend may be the first sign of a shift—if confirmed.

Confirmation Candle Technique

Wait for one additional candle to confirm direction.

• A bearish candle after a spinning top near resistance suggests sellers have taken control.

• A bullish candle after a spinning top near support signals buyers stepping in.

• This keeps decisions grounded in real momentum instead of assumptions.

Volume + Spinning Top

Higher volume during a spinning top strengthens its relevance. It means both sides fought hard but ended balanced, making the next candle more informative.

This approach keeps the spinning top pattern usage practical, simple, and focused on what truly matters: structure, levels, and confirmation.

Common Mistakes to Avoid

Even though the spinning top pattern is easy to recognize, it’s often misunderstood or misused. Here are the key pitfalls traders should watch out for:

Relying on the Spinning Top Alone

The spinning top reflects indecision, not direction. Acting solely on this candle without waiting for confirmation can lead to false entries. Always wait for the next candle to validate the signal.

Misidentifying Similar Candles

Candles like the doji, hammer, or inverted hammer may resemble spinning tops but carry different meanings. Carefully check the body size and shadow symmetry before labeling the candle.

Ignoring the Broader Trend and Context

A spinning top's significance depends on where it appears in the trend. Without understanding the market context, such as trend direction, support/resistance zones, or indicator signals, you risk misreading its intent.

Pro Tips to Trade Spinning Tops More Effectively

To get the most out of the spinning top candlestick, it’s essential to apply it within a structured trading approach. Here are some best practices:

• Use spinning tops on higher timeframes (4H, daily, weekly) for stronger signals

• Always place the pattern within broader market structure (support/resistance, trendlines, Fibonacci levels)

• Combine with confirmation candlestick patterns  before entering a trade

• Pair with technical indicators like RSI, MACD, or volume for added context

• Look for spinning tops after strong trends where momentum may be weakening

Conclusion

The spinning top candlestick is a clear visual signal of market hesitation. Its small body and balanced wicks show that neither side held control, making it a useful early clue to reassess momentum—especially near key levels or after strong trends. When paired with context and a confirmation candle, it becomes a reliable tool for understanding short-term sentiment shifts without overcomplicating your analysis.