WHITE SPINNING TOP
Definition
This candlestick has a tiny white body with upper and lower shadows that are longer than the body. It is recognized as a type of Doji and will behave as a Doji when it appears.
Recognition Criteria
1. The candlestick’s body is white and very small.
2. The upper and lower shadows are longer than the body.
Candlestick Requirements and Flexibility
The white body of the candlestick should be very small, with the lengths of the shadows exceeding the length of the body.
Trader’s Behavior
The market moves higher and then sharply lower, or vice versa, ultimately closing above the opening price, forming a tiny white body. This represents complete indecision between the bulls and the bears. The actual length of the shadows is not important; it’s the small body relative to the shadows that characterizes the spinning top.
If a White Spinning Top is observed after a long rally or a long white candlestick, it implies weakness among the bulls and serves as a warning of a potential change or interruption in the trend.
If a White Spinning Top is observed after a long decline or a long black candlestick, it implies weakness among the bears and serves as a warning of a potential change or interruption in the trend.
Like most other single candlestick patterns, the White Spinning Top has low reliability. It reflects only one day of trading and can be interpreted as either a continuation or a reversal pattern. This candlestick needs to be used in conjunction with other candlesticks to confirm a trend.