BLACK SPINNING TOP
Definition
This candlestick has a tiny black 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 black and very small.
2. The upper and lower shadows are longer than the body.
Candlestick Requirements and Flexibility
The black 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 below the opening price, forming a tiny black 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 Black 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 Black 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 Black 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 pattern must be used in conjunction with other candlesticks to confirm a trend.