The Spinning Top candlestick is a clear sign of indecision in the marketplace. This is demonstrated by the candle’s small body which reflects the opening and the closing price of the stock were close in value. However, the short body of the candle gives way to long upper and lower wicks or shadows of nearly equal length which signifies the prices of the stock fluctuated considerably during the period. The bulls drove the price high and the bears drove the price low but neither of them were able to swing the market strongly in one direction or the other. Below is an example image of a bearish spinning top where the market closed down for the period.
A Spinning Top candlestick will be found just about anywhere on a stock chart. If the candlestick is found in the middle of a move, it is usually part of a continuation pattern. However, if found at the top of an upward trend or at the bottom of a downward trend it can signal a reversal. As always, it is a good idea to see which way the market moves on the next period candle before making a trading decision.