Updated on March 17, 2023
Spinning Top is a candlestick pattern used to highlight the indecisiveness of the market where neither buyers nor sellers are in a dominant position. This candlestick pattern has a relatively short body with long upper and lower wicks. This indicates high volatility as both the bulls and the bears are trying hard to push prices on the upper side and the lower side respectively. Such a body is formed when the opening price and the closing price of the security are almost at the same levels. This pattern can indicate a bullish or a bearish market and the indecisiveness of the market shows a sideways movement indicating a possible reversal of trends. Traders have to watchout for the next trend to take concrete trading positions.