UK Accounting Glossary
Spinning Tops candlesticks represent indecision and often lead to a change in market direction under the right market conditions.
Spinning Tops candlesticks have a long upper shadow, long lower shadow and small real body.
Spinning Tops represent indecision. The small real body shows little movement from open to close, and the shadows indicate that both bulls and bears were active during the session. Even though the stock opened and closed with little change, prices moved significantly higher and lower in the meantime. Neither buyers nor sellers could gain the upper hand and the result was a standoff.
After a long advance, a spinning top indicates weakness among the bulls and a potential change or interruption in trend. After a long decline, a spinning top indicates weakness among the bears and a potential change or interruption in trend.
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This glossary post was last updated: 22nd March 2020.