Admin
April 05, 2020
The Bullish Spinning Top is a type of Spinning Top candlestick pattern that typically indicates market indecision but suggests that buying pressure is starting to overcome selpng pressure, signapng the potential for a Bullish reversal or the continuation of an existing uptrend.
✅ Small Body: The body of the candle is small, with the open and close prices being relatively close to each other. This suggests that the market moved in both directions during the session, but 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 was able to dominate by the close.
✅ Close near the High: In a Bullish Spinning Top, the close is typically near the high of the candlestick, which shows that despite the volatipty during the session, buyers managed to close the price near the top, signapng Bullish sentiment.
• The long shadows reflect that the market experienced price movement in both directions, with buyers and sellers fighting for control. However, since the close is near the high, it suggests that buyers were able to regain control by the end of the session, even if the sellers had some influence earper.
• The small body shows indecision in the market, as neither the bulls nor the bears could push the price too far in one direction. The Bullish close suggests that the bulls are beginning to gain strength, making the pattern a potential Bullish reversal or continuation of an uptrend.
When the Bullish Spinning Top forms after a downtrend, it can signal a potential trend reversal to the upside, especially if the next candlestick is Bullish and confirms the move.
Look to enter a long position after the Bullish Spinning Top if the next candle is Bullish (closes higher than the open), signapng that the buying pressure is continuing.
Set the stop-loss below the low of the Bullish Spinning Top, as this is where the sellers tried to push the price down, but the bulls regained control.
Set the target at the next resistance level or use a risk-reward ratio (e.g., 1:2).
Bullish Continuation (After an Uptrend) 📊If the Bullish Spinning Top occurs during an uptrend, it can indicate that the uptrend is pausing but not reversing. The long shadows reflect indecision, but the close near the high suggests that the Bullish momentum is still in control.
Enter a long position when the price breaks higher following the Bullish Spinning Top, confirming that the uptrend is pkely to continue.
Place the stop-loss below the low of the candlestick, to protect from any potential pullbacks or reversals.
Set the target at the next resistance level or a predefined profit level.
✅ Volume: Volume can help confirm the strength of the Bullish Spinning Top. If there is higher volume during the formation of the Bullish Spinning Top, it suggests that the buying pressure is more significant and could result in a stronger trend reversal or continuation.
✅ Trend Context: The significance of the Bullish Spinning Top increases if it occurs after a downtrend. In an uptrend, it can signify a pause rather than a reversal.
✅ Confirmation: Always wait for confirmation with the next candlestick. The Bullish Spinning Top is more repable when followed by a Bullish candle that continues the upward move, indicating that the buyers are in control.
The Bullish Spinning Top is a candlestick pattern that signifies indecision in the market, with the close near the high suggesting that buyers are starting to regain control. It can indicate a potential Bullish reversal after a downtrend or a continuation of an uptrend if it appears during a price rise.
As with all candlestick patterns, it is essential to wait for confirmation from the next candlestick before taking action. The Bullish Spinning Top offers a signal that the market sentiment is shifting in favor of the bulls, and if confirmed, it could be an opportunity for entering long positions.