Thread by @StocksTreasures

#Lesson2: Spinning Top

🥇Spinning Top

✅A spinning top is a candlestick pattern that has a short real body that is vertically centered between long upper and lower shadows.

Tags:- @kuttrapali26

✅The candlestick pattern represents indecision about the future direction of the stock.

✅ It means that neither buyers nor sellers could gain the upper hand.

✅A candlestick pattern forms when the buyers push the price up during a given time period, and the sellers push the

price down during the same time period, but ultimately the closing price ended up very close to the open.

✅After a strong price advance or decline, spinning tops can signal a potential price reversal if the candle that follows confirms.

✅A spinning top can have a close above or below the open, but the two prices are always close together.

🥇What does spinning top tells?

✅ Spinning top can signal a possible price reversal if it occurs following a price advance or decline.

✅A spinning top that occurs at the top of an uptrend could be a sign that bulls are losing their control and the trend may reverse.

✅A spinning top at the bottom of a downtrend could signal that bears are losing control and bulls may take the reins.

✅Confirmation helps clarify what the spinning top is saying. The confirmation comes from the next candle

✅If a trader believes a spinning top after an uptrend could result in a reversal to the downside, the candle that follows the spinning top should see prices drop.

If it doesn't, the reversal is not confirmed and the trader will need to wait for another trade signal.

✅If the spinning top occurs within a range, this indicates indecision is still prevalent and the range will likely continue.

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