The Spinning Top is a single-candle pattern with a small body and relatively long wicks on both sides. It signals indecision — both buyers and sellers were active during the session, but neither gained significant control. The result is a price that closed near where it opened.
Spinning Top vs Doji
What Separates Spinning Top from Doji
| Feature | Spinning Top | Doji |
|---|---|---|
| Body | Small but visible | None (or near-zero) |
| Wicks | Long on both sides | Long on both sides |
| Signal strength | Moderate indecision | Stronger indecision |
| Colour | Green or red | Usually neutral |
Context is Everything
Spinning Top in an uptrend: Sellers are beginning to contest the rise. Not an immediate reversal, but a warning to tighten stop losses on long positions.
Spinning Top in a downtrend: Buyers are showing up. Not a confirmed reversal — wait for a follow-up bullish candle before acting.
Multiple Spinning Tops in a row: The market is in consolidation. Switch from trend-following to range-bound strategies.
Spinning Top in a downtrend: Buyers are showing up. Not a confirmed reversal — wait for a follow-up bullish candle before acting.
Multiple Spinning Tops in a row: The market is in consolidation. Switch from trend-following to range-bound strategies.
A Spinning Top at a major support or resistance level on the NSE carries more weight than one in the middle of a trend. Three or more Spinning Tops in a row often precede a sharp breakout in either direction — watch for a volume spike to signal the direction.
Trading the Spinning Top
- Never trade a Spinning Top in isolation — it is a warning signal, not an entry signal
- Use it to tighten stop losses on existing positions
- Wait for the next candle to confirm direction before taking any new trade
- Combine with RSI and volume for higher-confidence signals
