Monthly Spinning Top candle. Spinning tops are a sign of indecision in the market because the long upper and lower shadows didn’t result in a meaningful change in price between the open and close. In other words, the bulls sent the price sharply higher and the bears sent the price sharply lower, but in the end, the price closed near where it opened at the beginning of the session. This indecision can be the sign of an upcoming trend reversal.
While spinning tops may be relatively benign on the day they occur, they are often a sign of significant trend changes over the coming periods. A spinning top that occurs at the top of a bullish uptrend could be a sign that bulls are losing their control and the trend may reverse. Similarly, a spinning top at the bottom of a downtrend could signal that bears are losing control and bulls may take the reins.