Spinning Top

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Spinning Top Candlestick Definition and Example

What is a Spinning Top Candlestick?

A spinning top is a candlestick pattern with a short real body that’s vertically centered between long upper and lower shadows. The candlestick pattern represents indecision about the future direction of the asset. Neither the buyers nor the sellers could gain the upper hand. The buyers pushed the price up during the period, and the sellers pushed the price down during the period, but ultimately the closing price ended up very close to the open. After a strong price advance or decline, spinning tops can signal a potential price reversal, if the candle that follows confirms.

A spinning top can have a close above or below the open, but the two prices need to be close together.

Key Takeaways

  • Spinning tops are symmetrical, with upper and lower shadows of approximately equal length.
  • The real body should be small, showing little difference between the open and close prices.
  • Since buyers and sellers both pushed the price, but couldn’t maintain it, the pattern shows indecision and that more sideways movement could follow.
  • Following a strong move higher or lower, a spinning top shows that the trend traders may be losing conviction. For example, following a strong up move, a spinning top shows buyers may be losing some of their control and a reversal to the downside could be near.
  • Spinning tops, and nearly all candlestick patterns, require confirmation. If a spinning top could be the start of a reversal, the next candle should confirm. If the spinning top is showing indecision, then the next candle should also move sideways within the range.

What Does a Spinning Top Tell You?

Spinning tops are a sign of indecision in the asset because the long upper and lower shadows didn’t result in a meaningful change in price between the open and close. The bulls sent the price sharply higher and the bears sent the price sharply lower, but in the end, the price closed near where it opened. This indecision can signal more sideways movement, especially if the spinning top occurs within an established range. It can also signal a possible price reversal if it occurs following a price advance or decline.

Sometimes spinning tops may signal a significant trend change. A spinning top that occurs at the top of an uptrend could be a sign that bulls are losing their control and the trend may reverse. Similarly, a spinning top at the bottom of a downtrend could signal that bears are losing control and bulls may take the reins.

In any case, confirmation helps clarify what the spinning top is saying. Confirmation comes from the next candle. If a trader believes a spinning top after an uptrend could result in a reversal to the downside, the candle that follows the spinning top should see prices drop. If it doesn’t, the reversal is not confirmed and the trader will need to wait for another trade signal. If the spinning top occurs within a range, this indicates indecision is still prevalent and the range will likely continue. The candle that follows should confirm, meaning it stays within the established sideways channel.

Spinning tops are a common candlestick pattern, which means they work best in conjunction with other forms of technical analysis. For example, traders may look at technical indicators, like the moving average convergence-divergence (MACD) or relative strength index (RSI), for signs of a reversal before taking a trade based on a spinning top. Indicators or other forms of analysis, such as identifying support and resistance, may aid in making decisions based on candlestick patterns.

Example of a Spinning Top Candlestick

The chart example shows several spinning tops. The first one, on the left, occurs after a small price decline. It is followed by a down candle, indicating a further price slide. The price does head a bit lower but then reverses to the upside. If taking trades based on candlesticks, this highlights the importance of having a plan and managing risk after the candlestick.

The second spinning top occurs within a range. It confirms the current indecision of the market, as the price continues to head sideways.

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The third spinning top is exceptionally large compared to the candles around it. It occurred after an advance and was followed by a large down candle. This ended up being a reversal candle, as the price proceeded lower.

As the price was dropping, another spinning top formed. It ends up being a brief pause, as the next candle gapped lower and continued falling.

The examples highlight the importance of confirmation and context. Spinning tops within ranges typically help confirm the range and the market’s indecision. Spinning tops within trends may be reversals signals, but the candle that follows needs to confirm.

The Difference Between a Spinning Top and a Doji

Spinning tops and dojis both represent indecision. Dojis are smaller, with small real bodies and small upper and lower shadows. The Spinning top has long upper and lower shadows. Both patterns occur frequently and are sometimes used to warn of a reversal after a strong price move. Both types of candlesticks rely heavily on confirmation. A strong move after the spinning top or doji tells more about the new potential price direction than the spinning top or doji itself.

Limitations of Using the Spinning Top

Spinning top candlesticks are common, which means many of the patterns witnessed will be inconsequential. Since assets often have periods of indecision, this makes sense. Spinning tops frequently occur when the price is already moving sideways or is about to start.

As for forecasting reversals, the common nature of spinning tops also makes this problematic. Many spinning tops won’t result in a reversal. Confirmation is required, but even with confirmation, there is no assurance the price will continue in the new direction.

Trading around a spinning top can also pose some problems since the candle can be quite large from high to low. If confirmation comes after a spinning top and a trade is taken, placing a stop loss above or below the high/low of the spinning top could result in a large risk which doesn’t justify the potential reward.

Assessing the reward potential of a spinning top trade is also difficult since the candlestick pattern doesn’t provide a price target or exit plan. Traders need to utilize other candlestick patterns, strategies, or indicators to find a profitable exit.

Spinning Top

Every spinning top that leaves our hands to become part of your life — and we mean every single one — is built on the same belief: that a top is more than just a toy. That, above all, a top must be absolutely simple, elegant and designed forever.

20 MetalMuseum™ tops

Discover the beauty of over 18 different metals and finishes in our unique Metal Museum™ collections.

CNC from solid Block

Tops are precision-machined using only the purest metals and alloys from around the world.

Lifetime Warranty

ForeverSpin tops will last forever. Every top is safe with our lifetime guarantee and the ForeverSpin seal.

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A great experience with every touch – we take tactile experience & surface finish very seriously.

Hologram & Serial Number

Every last top is checked for perfection! Only the finest tops receive the ForeverSpin™ seal.

Hailing from Toronto, Canada, each spinning top is built with the love and passion of our team.

Now Loved Worldwide in 143 Countries

Engineers – Kids – Writers – Designers – Teachers – Collectors – Doctors – Coders – and many more.

” Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away. ” Antoine de Saint-Exupéry

” Simplicity is the ultimate sophistication. ” Leonardo Da Vinci

Why a Spinning Top? There will be something in it for you forever.

Perhaps you need a little boost in creativity or focus, or you need to de-stress a bit. Maybe you’re in search of a gift that lasts forever or want to compare weight and touch different metals. Or you just like a bit of competition or you love minimalistic art. Engineers, kids, designers, collectors. No matter how old, how wise and how smart you become there will be something in it for you Forever.

Boost in Creativity and Focus

According to recent studies, fiddling with items at your desk can aid thought process and improve productivity!

Educational on All Fronts

Learn about the colors, weights and attributes of the metals of our tops! Learning can be both fun and beautiful.

Timeless Art

Your spinning top will forever remain a timeless, elegant piece of art that will be loved by your children’s children.

Challenge Yourself

We all love to challenge ourselves! Beat your own spin times or, better yet, compete with your friends for pizza or drinks!

You will love our MetalMuseum™ View Collection

Wonderful Collections

Find variety with our collections of tops and docks

Incredible Precision

Precision on a microscopic scale with our manufacturing process

Upside Down Spins

Explore the fun possibilities. Be creative!

Experience Beauty of Natural Colors

Unique colour contrasts can make for amazing photographs

Elegant Desk Ornament

Display your collections with one of 3 ForeverDock™s

Feel Fine Metals

Surface finish and tactile experience are very important to us

Enjoy Some Healthy Competition

Battle your friends for the longest spin title!

Extend Your Spin

The ForeverBase will lengthen your spin substantially

Frequently Asked Questions

Not everyone is familiar with the beauty of a spinning top and you might need some tips. Here are a few things that might help you start your collection, become a spin master or inspire you to pick something original for your loved ones.

We love all of our spinning tops equally, there are certainly some that are recommended for beginners over others. In general, the lighter that the top is, the easier it will be to spin – and to spin upside down! The magnesium top is currently our lightest top and is easiest to spin, especially for children. Titanium is another light top that is rather easy to spin and is actually our most popular top as well!

The highly-desired Tungsten top is the heaviest in our collection right now and is the hardest to spin, but with a little bit of practice, you can become a master in no time, even if it is your first spinning top!

As mentioned above, the weight of the top you spin will affect how long it can spin pretty significantly. The longer you want your spin to be, the heavier the top should be, with tungsten leading the pack by a wide margin.

If you prefer to stick to your favourite spinning top, there are some other things you can do! Make sure that the surface you are spinning on is as level as possible. ForeverSpin spinning tops are perfectly balanced and you wouldn’t believe how a table that isn’t level can impact your spin!

Secondly, you can change the surface that you spin on itself. A top will spin on glass longer than on wood and on our spinning base even longer than on glass! Find one here to dramatically increase your spin time!

Our manufacturing process

ForeverSpin spinning tops are made out of nothing but the purest and highest-quality metals. This metal is formed into solid billets and moved to a state of the art facility where each top is CNC-machined on a lathe in one operation to achieve an incredible degree of precision. After years of research, hundreds of prototypes and relentless dedication to mastering the creation of spinning tops, we continue the pursuit of perfection.

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Spinning Top Candlestick Pattern (DEFINITION & TRADING TIPS)

A spinning top candlestick pattern reflects indecision in the market which simply means that buyer and sellers are pretty much at even. Spinning top is a candlestick pattern a substantially shorter body surrounded on both sides by two long candlestick wicks.

In other words, a spinning top candlestick if often regarded as a neutral candlestick.

My Opinion On Spinning Top Candlestick Pattern

But for my case, I don’t consider a spinning top candlestick pattern as a neutral candlestick at all.

Maybe in the perspective of buying and selling power, yes, it is a neutral candlestick by many traders simply because the sellers and buyers even out each out during the formation of the spinning top candlestick.

I consider a spinning top candlestick as a potential reversal candlestick in the context of where it forms on a price chart.

  1. If I see a spinning top candlestick pattern form on a major resistance level, I would consider it as a potential bearish reversal candlestick and I would place a sell stop order a few pips under the low of the candlestick. If price breaks the low of the spinning top candlestick and heads down, it just ads further confirmation that the downtrend maybe just about starting.
  2. Similarly, If I see a spinning top candlestick form on a major support level, I would consider it as potential a bullish signal. The confirmation is when the high of that spinning top candlestick pattern is broken and price starts rising up. So I do is to place a buy stop pending order a few pips above the high of the spinning top candlestick and then if price breaks it, I’m in on a buy trade.

This concept can be applied to trendlines, fibonaci retracment levels, price channels, chart patterns etc.

There’s a lot of setups where a spinning top candlestick patterns can be used as a buy/sell signal but the important thing is to make sure there are support/resistance levels involved before you make a trading decision.

Spinning Top Candlestick Formation:Why That Shape?

Every time you look at a candlestick, ask yourself these questions:

  • what is the story here?
  • Are the bears or bulls in control or are they even?
  • where is this candlestick forming in relation to significant price levels like support/resistance levels?

Every candlestick has a story to tell.

It is the same with the spinning top candlestick pattern.

To understand the meaning of why the spinning top candlestick forms in that kind of shape, you need to go deeper and understand the reasons that cause it to form that way.

Let’s look at them, shall we?

Remember, in the beginning of this article, I said that a spinning top candlestick is considered a neutral candlestick?

Well, that is because the buyers are sellers are almost equal, that’s why it is considered neutral.

The chart below explains a lot why the spinning tops form the way they do:

The Color Of The Spinning Top Candlestick Does Not Matter

What do I mean by that? …When I mean color, I’m talking about the red color being bearish and green color being bullish.

You have to think in terms of where it forms:

  • if a “green” spinning top forms on a resistance level, it should be considered a potential bearish signal even thought it is bullish(green).
  • You apply the same logic if you see a “red” spinning top form on a support level: it should be considered a potential bullish signal even though it is bearish (red).

These two charts below explain what I’m talking about here.

Lets assume that on the first chart on the left, price is going up and hits a resistance level and moves down and the next chart to it on the right, price is going down and hits a support level and bounces up. At each of these two situations, the turning point was the formation of a green spinning top candlestick pattern. This chart shows the “green” situation:

This second chart shows the “red” situation:

See what I’m talking about?

Its all in the context of where the spinning top candlestick forms on your chart. That’s what’s important.

So the color of the spinning top candlestick pattern does not matter. It is where it forms that matters.

Not Every Spinning Top Candlestick Is Created Equal

I totally ignore any spinning top candlestick that does not form in levels of significance. What do I means by levels of significance?

  • support levels
  • resistance levels
  • trendlines (trendlines provide dynamic support and resistance levels)
  • Fibonacci retracement levels
  • price confluence levels

These are important price levels which I look for and identify in advance and then I wait to see if price reaches these levels.

And If price reaches these important price levels, next thing I do is watch to see if any reversal candlestick forms, including the spinning top, which would give me a clue of the most likely direction price is going to take so I prepare to take a trade based on the clue I get from these reversal candlesticks.

This is how you trade using price action. It is nothing complicated.

Price action trading is all about identifying important levels and then wait for price to hit these levels, then look for the buy/sell signals and for that, you use reversal candlesticks and then place your trade.

How To Trade The Spinning Top Candlesticks

Can you trade the spinning top candlestick on its own without considering other factors like support levels, resistance levels etc?

Try it if you want…

But to me, that does not make any sense at all.

The best way to trade spinning top candlesticks in my opinion is, as I said above, to trade them when they form in levels of significance.

The spinning top candlestick can be applied to Forex trading strategies like:

What you do is place a pending buy stop/sell stop order a few pips above the high/low and wait for price to confirm your analysis with a breakout in the desired direction.

What I Really Like About Spinning Top Candlesticks

The amazing thing about spinning top candlesticks too is that they can allow you to trade with a tight stop loss and this can make make your trading risk:reward ratio really good.

In other words, the stop loss distance is fairly small in comparison if you are trading with other reversal candlesticks that have very long bodies where you have to place your stop loss a fair long distance away thus drastically reducing your risk:reward ratio.

That in my mind is the real beauty about trading spinning tops.

Where to place stop loss?

Just a few pips under the low/high of that spinning top candlestick. Consider the spreads when you place stop loss.

If price is too close to your entry price, don’t do that, instead, look for the nearest swing low/high and place your stop loss there.


So there you have it, a bit of lesson on how to trade with the spinning top candlestick patterns.

  • the spinning top candlestick pattern is considered a neutral pattern but in the context of where it forms, it becomes a reversal candlestick pattern and the breakout of the low/high is often the confirmation that price is going to reverse.
  • the spinning top can be used as a buy/sell signal on many price action trading strategies that can be found on forextradingstrategies4u.com , so have a look around.
  • spinning tops can form in all timeframes but not all spinning tops are created equal. The important spinning tops you should be watching out for are those that form on significant price levels and the main ones are support and resistance price levels.
  • remember, the color of the spinning top candlestick does not matter.

As usual, I will end this article with a request that you tweet, like, share etc with your friends and fans. Maybe you are member of another forex blog/website/forum? Why not copy and paste the article link in there?

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