A spinning top has a small body with wicks of meaningful length above and below it. Price moved in both directions during the session but settled close to where it opened, signalling neither buyers nor sellers could establish firm control.
Why it matters
- —Suggests the prevailing trend is losing momentum, even if it isn't as decisive a signal as a doji.
- —More meaningful after an extended trend than in a quiet, range-bound market where small bodies are common anyway.
- —Best combined with volume and the next candle's direction before drawing any conclusion.
How to read it
| After a strong trend | Early sign the trend may be losing steam |
| In a sideways range | Low-conviction noise |
| Followed by a strong reversal candle | Adds weight to a trend change |