Question 1

What is the spinning top candlestick pattern?

Accepted Answer

A spinning top candle is a small candlestick pattern that can signal indecision regarding the future price direction of a certain cryptocurrency. The spinning top candlestick pattern forms during both uptrends and downtrends, and it signifies a possible trend reversal. The small body of the spinning top candlestick pattern indicates indecision in a market regarding the future direction of the asset, as mentioned before. It means that neither the buyers or the sellers could have an upper hand.

Question 2

How many types of the spinning top candlestick pattern are there?

Accepted Answer

There are two different types of the spinning top candlestick pattern, which are: The bullish spinning top candlestick pattern: This one forms when the closing price is over the opening price, resulting in a green candle. The bearish spinning top candle pattern: This one is developed when the closing price is below the opening price, thus resulting in a red candle.

Question 3

What are the differences between the spinning top candlestick pattern and the doji candle?

Accepted Answer

The spinning top candlestick pattern works to signal an indecision in the crypto market when neither the sellers or the buyers has an upper hand, and the doji candle is another candlestick pattern that also points out indecision in the market. Thus, both the spinning top candle pattern and the doji candlestick pattern signal a potential price reversal of the prevailing market trend, and on top of that, they look very similar to each other. However, there are quite a few key differences between the spinning top candlestick pattern and the doji candlestick pattern. Namely, visually the doji candle pattern is shaped like a cross; this is because it has a short body and smaller upper and lower shadows. Most of the time, the opening price is similar to the closing price. When compared closely, the spinning top candlestick pattern has a much wider candle body and longer wicks. The spinning top candle pattern and the doji candlestick pattern both occur pretty often across all time frames, and with all digital currencies. At the end of the day, both of these candlestick patterns rely on the confirmation received from the next candle. What’s more, if either the spinning top candlestick pattern or the doji candle pattern are followed by a strong move in the opposite direction of the currently prevailing market trend, we can safely assume there is an even greater chance of a trend reversal.

How to Use Spinning Top Candlestick Pattern to Trade Crypto