Spinning Top Candlestick
Candlefocus EditorThe size of the real body in this candlestick is important, as it must be smaller than in typical candles such as the marubozu. This indicates the lack of a clear indication of the market’s direction, as buyers and sellers trend to close the price close to its open. Also, the shadows should be longer than the real body, as it is above and below it. This is an indication of the weak attempts by buyers or sellers to push the price, only to return back to the opening price.
In addition, the spinning top candlestick serves as an indication that a reversal might be on the horizon, as it usually follows a strong trend and is seen as a sign of a potential reversal. The candlestick can appear on a single day or form over an extended period; when it appears in an extended period, it implies that buyer and seller activity is starting to level off.
Overall, the spinning top is a candlestick pattern that highlights indecision in the stock market. Its small real body indicates that buyers and sellers are failing to push the price in either direction, while its long shadows show that buyers and sellers have unsuccessfully attemped to push the price. Additionally, the candle indicates that a reversal could be soon and forms over a single day or an extended period of time.