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Spinning Top

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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Spinning Top

A spinning top is a technical analysis tool used to identify potential reversals in the price of a security. It is a candlestick pattern that consists of a single candle with a long upper shadow, a short body, and a long lower shadow. The pattern is considered a sign of indecision in the market, as the price of the security moves up and down but ultimately closes near its opening price. This pattern can be used to identify potential reversals in the price of a security.

History of the Term

The term โ€œspinning topโ€ was first used in the late 19th century by Japanese rice traders. The pattern was used to identify potential reversals in the price of rice. The pattern was later adopted by stock traders in the United States and Europe, and is now widely used by technical analysts to identify potential reversals in the price of a security.

Comparison Table

Pattern Upper Shadow Body Lower Shadow
Spinning Top Long Short Long

Summary

A spinning top is a technical analysis tool used to identify potential reversals in the price of a security. It is a candlestick pattern that consists of a single candle with a long upper shadow, a short body, and a long lower shadow. The pattern is considered a sign of indecision in the market, as the price of the security moves up and down but ultimately closes near its opening price. For more information about this term, you can visit websites such as Investopedia, StockCharts, and TradingView.

See Also

  • Doji
  • Hammer
  • Hanging Man
  • Inverted Hammer
  • Shooting Star
  • Engulfing Pattern
  • Tweezer Tops
  • Tweezer Bottoms
  • Morning Star
  • Evening Star

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