You’re staring at your trading screen.
Price has been climbing for days.
Then this weird candle shows up – tiny body, long shadows on both sides.
Your gut says something’s about to change.
That’s the bearish spinning top candlestick pattern trying to tell you a story.
What is a Bearish Spinning Top Candlestick Pattern?
Picture this.
Bulls and bears are in an epic tug-of-war.
Nobody’s winning.
The bearish spinning top shows up when bulls push prices higher, bears drag them down, then both sides get exhausted.
You get this small real body (the thick part) with long upper and lower shadows (the thin lines).
It’s like watching two fighters punch each other out until they’re both too tired to throw another punch.
Key Characteristics:
- Small real body (open and close prices are nearly the same)
- Long upper shadow (shows bulls tried to push higher but failed)
- Long lower shadow (shows bears tried to drag it down but couldn’t hold)
- Appears after an uptrend (this is crucial – timing matters)
The colour doesn’t matter much here.
Red or green, both tell the same story of indecision.
How to Identify a Spinning Top Pattern
I’ve seen traders mess this up countless times.
They think every small candle with shadows is a spinning top.
Wrong.
Here’s what actually qualifies:
The Real Body Test:
The body should be less than 25% of the total candle height.
If the body is fat, it’s not a spinning top.
The Shadow Test:
Both shadows should be at least twice the length of the real body.
Short shadows = not enough battle between bulls and bears.
The Context Test:
This is where most people screw up.
A spinning top in a downtrend isn’t bearish.
It needs to appear after price has been climbing.
Pro tip: I always check the last 5-10 candles to confirm we’re actually in an uptrend before calling it bearish.
Psychology Behind the Bearish Spinning Top
Let me tell you what’s really happening inside traders’ heads.
Bulls have been celebrating.
They’ve been buying, making money, feeling smart.
Then this spinning top shows up.
Suddenly, they can’t push price higher.
Bears start getting bold.
They’re testing the waters, pushing back.
Neither side can dominate.
This is the moment of truth.
It’s like a crowd of people trying to push through a door.
When everyone pushes with equal force, nobody moves.
That’s your signal that the party might be ending.
Bearish Spinning Top vs Other Candlestick Patterns
People always ask me: “How is this different from a doji?”
Fair question.
Spinning Top vs Doji:
- Doji: Open and close are exactly the same (or nearly)
- Spinning Top: Small body but there’s still a gap between open and close
Spinning Top vs Hammer:
- Hammer: Long lower shadow, tiny upper shadow, appears in downtrends
- Spinning Top: Both shadows are long, appears in uptrends
Spinning Top vs Shooting Star:
- Shooting Star: Long upper shadow, no lower shadow, bearish
- Spinning Top: Both shadows present, shows indecision
The shooting star is like a sniper taking out the bulls.
The spinning top is like a stalemate in chess.
Trading Strategy for Bearish Spinning Top Pattern
Here’s where the rubber meets the road.
I’m going to give you my exact approach.
No theory, just what works.
Entry Strategy:
Wait for confirmation.
Never trade the spinning top alone.
I wait for the next candle to close below the spinning top’s low.
That’s my trigger.
Stop Loss Placement:
Place your stop above the spinning top’s high.
Add a few pips for safety (I use 5-10 pips depending on the pair).
This gives you a clean exit if bulls regain control.
Take Profit Targets:
Target 1: Previous support level (closest one) Target 2: 50% Fibonacci retracement of the recent uptrend Target 3: Major support zone
I scale out at each level.
Take 1/3 profit at each target.
This way, even if I’m wrong about the bigger move, I still bank some cash.
Risk Management:
Never risk more than 2% of your account on any single trade.
I don’t care how “perfect” the setup looks.
Markets can stay irrational longer than you can stay solvent.
Real Trading Examples
Let me share a trade I took last month.
EUR/USD was climbing for 3 weeks straight.
Then I spotted a textbook bearish spinning top at 1.0850.
Long upper shadow, long lower shadow, tiny body.
Next candle opened lower and kept falling.
I entered short at 1.0840 (below the spinning top’s low).
Stop at 1.0870.
Target at 1.0750 (previous support).
Result: +90 pips in 2 days.
What made this trade work:
- Clear uptrend before the pattern
- Strong confirmation candle
- Respected support level for target
- Proper risk management
Common Mistakes When Trading Spinning Tops
I’ve made these mistakes.
You probably will too.
Learn from my pain.
Mistake #1: Trading Without Confirmation
Seeing a spinning top and immediately going short.
Bad idea.
Sometimes it’s just a pause before bulls continue higher.
Always wait for that confirmation candle.
Mistake #2: Ignoring the Trend
Finding spinning tops in sideways markets and calling them bearish.
Context is everything.
No uptrend = no bearish spinning top.
Mistake #3: Wrong Time Frame
Trading 1-minute spinning tops like they’re daily patterns.
Higher time frames carry more weight.
I focus on 4-hour and daily charts for these setups.
Mistake #4: Poor Risk Management
Getting excited about a “perfect” setup and risking 10% of the account.
One bad trade can wipe you out.
Stick to 1-2% risk per trade, maximum.
Combining Spinning Tops with Other Indicators
Smart traders don’t rely on candlesticks alone.
Here’s what I layer on top:
Volume Analysis:
Heavy volume on the spinning top = more significant Light volume = might be a fake signal
RSI Divergence:
Price making higher highs but RSI making lower highs Plus a spinning top = strong bearish signal
Moving Average Resistance:
Spinning top forming right at a key moving average Extra confirmation for the reversal
Support and Resistance:
Spinning top at a major resistance level Much more reliable than random spinning tops
I never trade a pattern in isolation.
The best setups have multiple confluences.
Best Time Frames for Bearish Spinning Top Trading
Different time frames, different games.
Daily Charts:
Most reliable for swing trading Patterns here can lead to multi-week moves My personal favourite for spinning top trades
4-Hour Charts:
Good for shorter swings (3-7 days) Still reliable enough for consistent profits Less noise than lower time frames
1-Hour Charts:
Day trading territory More false signals but quicker results Need tighter risk management
15-Minute Charts and Below:
Honestly, I avoid these for spinning tops Too much noise Too many fake-outs
Stick to 4-hour and daily if you’re starting out.
Market Conditions That Favour Spinning Top Patterns
Not all market conditions are created equal.
High Volatility Markets:
Spinning tops work better when emotions are running high More dramatic reversals Clear buying and selling pressure
Trending Markets:
You need an established trend for a meaningful reversal Sideways markets don’t give clean spinning top setups
High Volume Sessions:
London and New York overlap for forex First 2 hours of stock market open When big players are active
Economic News Days:
Spinning tops before major news releases Market uncertainty creates indecision Perfect breeding ground for these patterns
Advanced Spinning Top Trading Techniques
Once you’ve mastered the basics, here’s the next level.
Multiple Time Frame Analysis:
Check the daily chart for the big picture trend.
Use 4-hour for your spinning top entry.
Use 1-hour for precise entry timing.
This gives you the full story.
Volume Profile Integration:
Look for spinning tops at high volume nodes.
These areas act like magnets for price.
When price struggles here, reversals are more likely.
Market Structure Analysis:
Break of Structure (BOS): When price breaks below the last higher low Change of Character (CHoC): When momentum shifts from bullish to bearish
Spinning tops often mark these transition points.
Risk Management for Spinning Top Trades
This is where amateurs become professionals.
Position Sizing:
Calculate your risk before you enter.
If stop loss is 30 pips away and you risk 2% per trade.
Work backwards to find your position size.
Never wing it.
Correlation Risk:
Don’t trade spinning tops on correlated pairs simultaneously.
EUR/USD and GBP/USD often move together.
One trade gone wrong becomes two trades gone wrong.
News Risk:
Check the economic calendar.
Major news can blow through your levels like they don’t exist.
I avoid spinning top trades 2 hours before high-impact news.
Technology and Tools for Pattern Recognition
Modern trading isn’t about staring at charts all day.
TradingView Alerts:
Set up custom alerts for spinning top formations Let technology do the watching You focus on analysis and execution
Pattern Recognition Software:
Many platforms now auto-detect candlestick patterns Use them as filters, not final decisions Still verify manually
Mobile Trading Apps:
Get notifications on your phone Don’t miss setups while you’re away from your desk But never trade from your phone – too easy to make mistakes
Spinning Top Pattern in Different Markets
Forex Markets:
Work great on major pairs (EUR/USD, GBP/USD, USD/JPY) 24-hour market means more opportunities Watch for session transitions
Stock Markets:
Individual stocks can be tricky Better on indices like S&P 500 or NASDAQ Higher volume = more reliable patterns
Cryptocurrency:
Crypto never sleeps Spinning tops can be very effective here But volatility is extreme – adjust position sizes
Commodities:
Gold and oil respond well to these patterns Longer time frames work better Economic news has huge impact
Building a Complete Trading Plan
You can’t just trade patterns in isolation.
Here’s my framework:
Pre-Market Routine:
Check economic calendar Review overnight news Identify key support/resistance levels Mark potential spinning top zones
During Market Hours:
Monitor alerts for pattern formations Confirm with multiple indicators Execute with proper risk management Document every trade
Post-Market Analysis:
Review what worked and what didn’t Update your trading journal Plan for tomorrow’s session
Weekly Review:
Analyse your spinning top trade performance Identify patterns in your wins and losses Adjust strategy if needed
Psychology of Trading Spinning Top Patterns
The biggest enemy isn’t the market.
It’s you.
Fear of Missing Out (FOMO):
Seeing a spinning top and jumping in without confirmation Recipe for disaster Patience pays more than speed
Revenge Trading:
Taking a loss on a spinning top trade Immediately looking for another one to “get even” This is how accounts blow up
Overconfidence:
Getting cocky after a few winning trades Taking bigger risks Market will humble you fast
My advice: Trade like a robot.
Follow your rules.
Emotions are expensive.
Seasonal Patterns and Market Cycles
Markets have rhythms.
Smart traders learn these rhythms.
End of Month:
Institutional rebalancing More volatility Spinning tops more reliable
Quarter End:
Big players closing positions Trend reversals common Great time for spinning top trades
Holiday Periods:
Lower volume Patterns less reliable I often skip these times
Economic Reporting Seasons:
Earnings season for stocks Employment reports for forex High uncertainty = more spinning tops
The Future of Candlestick Pattern Trading
AI is changing everything.
But patterns still work.
Here’s why:
Human Psychology Doesn’t Change:
Fear and greed drive markets These emotions create patterns Spinning tops reflect this psychology
Algorithmic Trading:
Bots are programmed to recognize patterns This actually makes patterns more reliable Self-fulfilling prophecy
Market Evolution:
New markets emerge (crypto, NFTs) Same patterns appear Human nature is consistent
The tools evolve.
The patterns remain.
Common Questions I Get About Spinning Top Trading
“How often do spinning tops lead to reversals?”
About 60-70% of the time in trending markets.
Not perfect, but good enough to make money with proper risk management.
“Should I trade every spinning top I see?”
Hell no.
Quality over quantity.
I maybe take 2-3 spinning top trades per month.
“What’s the minimum trend length before a spinning top becomes meaningful?”
At least 10-15 candles of upward movement.
Preferably more.
Weak trends produce weak reversals.
“Can I use spinning tops for long trades?”
Technically yes, but I call those bullish spinning tops.
They appear after downtrends.
Same logic, opposite direction.
Building Your Spinning Top Trading System
Start simple.
Get complex later.
Phase 1: Pattern Recognition
Spend 2 weeks just identifying spinning tops Don’t trade yet Just mark them on your charts See how often they work
Phase 2: Add Confirmation
Start looking for the confirmation candle Paper trade your entries Track your theoretical performance
Phase 3: Real Money (Small Size)
Risk only 0.5% per trade Real money changes everything Emotions kick in
Phase 4: Scale Up
Once profitable for 3 months Gradually increase to 1-2% risk per trade Never rush this step
Frequently Asked Questions
Q: How reliable is the bearish spinning top pattern?
A: In trending markets with proper confirmation, it works about 60-70% of the time. The key is waiting for that next candle to confirm the reversal before entering.
Q: What’s the difference between a spinning top and a doji?
A: A doji has virtually no body (open equals close), while a spinning top has a small but visible body. Both show indecision, but spinning tops allow for a slight gap between open and close prices.
Q: Should I trade spinning tops on all time frames?
A: I recommend sticking to 4-hour and daily charts. Lower time frames generate too many false signals, while higher time frames offer more reliable setups with better risk-to-reward ratios.
Q: What happens if the confirmation candle doesn’t appear?
A: No trade. Simple as that. If the next candle doesn’t close below the spinning top’s low, the pattern fails. Move on to the next opportunity rather than forcing a trade.
Q: Can spinning tops work in sideways markets?
A: They’re much less effective in ranging markets. Spinning tops need a clear uptrend to be genuinely bearish. In sideways markets, they just show ongoing indecision rather than trend reversal.
Q: How do I set profit targets for spinning top trades?
A: I use a three-tier approach: first target at the nearest support level, second at 50% Fibonacci retracement of the recent uptrend, and third at major support zones. Scale out profits at each level.
Q: What indicators work best with spinning top patterns?
A: RSI divergence, volume analysis, and moving average resistance are my favourites. Multiple confirmations make for stronger trades than relying on the pattern alone.
Q: How long should I hold spinning top trades?
A: Depends on your time frame. Daily chart setups can run for weeks, while 4-hour setups typically last 3-7 days. Let the market tell you when the move is over.
Final Thoughts on Trading Bearish Spinning Top Patterns
The bearish spinning top candlestick pattern isn’t magic.
It’s just information.
Information about what bulls and bears are thinking.
Information about when trends might be getting tired.
The pattern works because markets are made of humans.
And humans follow predictable emotional cycles.
Greed turns to fear.
Confidence turns to doubt.
Spinning tops capture these moments of transition.
But remember this:
No pattern works 100% of the time.
Your job isn’t to be right on every trade.
Your job is to make more money on winners than you lose on losers.
The bearish spinning top gives you a framework to do exactly that.
Start small.
Stay disciplined.
And let the bearish spinning top candlestick pattern guide you toward more profitable trading decisions.
📊 Popular Candlestick Patterns
| Pattern Name | Type |
|---|---|
| Bearish Kicker | Bearish Reversal |
| Hanging Man | Bearish Reversal |
| Three Inside Down | Bearish Reversal |
| Gravestone Doji | Bearish Reversal |
| Piercing Line | Bullish Reversal |
| Bullish Kicker | Bullish Reversal |
| Bearish Engulfing | Bearish Reversal |
| Long-Legged Doji | Neutral/Reversal |
| Tweezer Bottom | Bullish Reversal |
| Dark Cloud Cover | Bearish Reversal |
| Doji | Neutral/Reversal |
| Bullish Harami | Bullish Reversal |
| Bearish Spinning Top | Bearish Reversal |
| Dragonfly Doji | Bullish Reversal |
| Three Outside Up | Bullish Reversal |
| Bullish Engulfing | Bullish Reversal |
