What does the Spinning Tops and Bottoms model tell you?

Spinning tops and bottoms are a sign of indecision in the asset, and the long upper and lower shadows indicate a lack of significant price change between the open and close. Bulls have pushed the price sharply upward, and bears have brought the price down sharply, but in the end, the candle's price closed at approximately the same level it opened.

This indecision can indicate further sideways movement, especially if the spinning tops and bottoms occur within a defined range, and it can also suggest a potential price reversal if it occurs after a price increase or decrease.

Sometimes, spinning tops and bottoms may indicate a significant change in trend, and a spinning top that occurs at the top of an upward trend can be a sign that bulls are losing control, and the trend may reverse. Similarly, a spinning bottom at the bottom of a downward trend can indicate that bears are losing control, and bulls may take over.

As is the case with candlestick patterns, the next confirming candle for the pattern helps clarify what the price trend will be afterward. If a trader believes that the Spinning Tops and Bottoms pattern after an upward trend could lead to a downward reversal, and vice versa.