What Is Spinning Top Candlestick Pattern

Alexszilk03 Oct, 2022Business

"A symmetrical chart pattern called a spinning top candlestick pattern offers helpful information about the state of the market for a particular asset. The pattern shows the lack of control both the buyer and the seller have over the transaction due to the ambiguity surrounding the asset's future path. When a buyer drives the price of an asset up while a selling drives it down at the same time, a spinning top candlestick pattern results. When the closing price is close to the open, the pattern predicts a tie between the two sides. However, if the candle shows a strong price uptrend or downturn, the spinning tops may point to a potential price reversal."