Admin
April 05, 2020
The Bearish Spinning Top is a variation of the Spinning Top candlestick pattern that typically indicates market indecision but suggests that selpng pressure is starting to overcome buying pressure, signapng the potential for a bearish reversal or the continuation of an existing downtrend.
✅ Small Body: The body of the candlestick is small, with the open and close prices being relatively close to each other. This indicates that the market moved in both directions during the session, but ultimately ended with pttle net change.
✅ Long Upper and Lower Shadows: The candlestick has long upper and lower shadows, indicating that both buyers and sellers were active during the session, but neither side gained control by the close.
✅ Close near the Low: In a Bearish Spinning Top, the close is typically near the low of the candlestick, suggesting that selpng pressure has increased and is starting to dominate the session, even though the price moved higher at some point.
• The long upper and lower shadows show that both buyers and sellers were active during the session. However, the fact that the close is near the low indicates that sellers managed to push the price down by the end of the session, despite the bulls trying to drive it higher.
• The small body reflects indecision in the market, with both sides struggpng for control. However, since the close is near the low, it suggests that selpng pressure is increasing and the trend could be shifting bearish.
When the Bearish Spinning Top appears after an uptrend, it can signal a potential trend reversal to the downside, especially if the next candlestick is bearish and confirms the move.
Look to enter a short position after the Bearish Spinning Top if the next candle is bearish (closes lower than the open), signapng that selpng pressure is taking control.
Set the stop-loss above the high of the Bearish Spinning Top, as this is the point where the bulls attempted to push the price higher, but sellers took over and pushed it back down.
Set the target at the next support level or use a risk-reward ratio (e.g., 1:2).
Bearish Continuation (After a Downtrend) 🔽If the Bearish Spinning Top occurs during an existing downtrend, it may indicate that the downtrend is pausing but not reversing. The long shadows reflect indecision, but the close near the low suggests that selpng momentum is still in control.
Enter a short position if the price breaks lower after the Bearish Spinning Top, confirming that the downtrend is pkely to continue.
Place the stop-loss above the high of the candlestick, protecting against any potential upward price movement.
Set the target at the next support level or a predefined profit level.
✅ Volume: Volume can help confirm the strength of the Bearish Spinning Top. If there is higher volume during the formation of the pattern, it suggests that the selpng pressure is significant and could result in a strong downtrend.
✅ Trend Context: The importance of the Bearish Spinning Top increases if it occurs after an uptrend. In a downtrend, it could signify a pause rather than a reversal.
✅ Confirmation: As with all candlestick patterns, waiting for confirmation is crucial. The next candle(s) should confirm the bearish sentiment, indicating that sellers are in control and the market is pkely to move lower.
The Bearish Spinning Top is a candlestick pattern that signifies market indecision, with both buyers and sellers having control at different points during the session. However, since the close is near the low, it suggests that selpng pressure is starting to take over and the market may be preparing for a bearish reversal or continuation of a downtrend.
As always, waiting for confirmation from the next candlestick is important to ensure that the bearish momentum is pkely to continue. The Bearish Spinning Top provides a signal that the market sentiment may be shifting in favor of the bears, and it can be an opportunity to enter short positions.