Bearish Spinning Top
The Bearish Spinning Top is similar in structure to its bullish counterpart but carries a slightly bearish undertone.
Bearish Spinning Top candle forms when buyers attempt to extend gains but fail to hold them, allowing sellers to close the session slightly lower. The result is a neutral candle leaning bearish in sentiment.
The small body indicates minimal net movement, while the long shadows capture intraday volatility. The close below the open gives the candle its bearish implication.
The psychology of this candle shows uncertainty but also hints at weakening bullish control. Sellers gain confidence seeing buyers unable to sustain their momentum.
Confirmation requires a following red candle that closes below the spinning top’s low. Increased volume strengthens the bearish case.
Its reliability improves at resistance levels or in overbought conditions. Alone, however, it is weak and requires confirmation.
Summary of Bearish Spinning TopPattern NameBearish Spinning TopPattern TypeWeak bearish reversal / indecision patternCharacteristicsSmall red (bearish) body, typically 10–25% of the total range, with upper and lower shadows of nearly equal length. Shows market uncertainty but a slight selling edge.Preceding TrendUsually appears after an uptrend or bullish rally; more reliable when formed near resistance zones or after a strong upward move.ExpectationReflects loss of momentum among buyers and emerging selling pressure. The reversal bias strengthens only after confirmation by the next bearish candle with higher volume.Trade Entry PointSell-stop placed 0.1–0.3% below the low of the spinning top only if the next candle closes bearish and volume exceeds 120% of the average.Stop LossAbove the spinning top’s high or 1× ATR(14) above the entry (whichever is higher).Price TargetPrimary: Nearest swing low. Secondary: Partial profits at 1.5R–2R levels. Trailing Option: Use EMA(8/20) crossover to capture extended downside moves.
According to a study on Nifty-50 stocks (2019–2024), 135 signals yielded 88 winners, giving a success rate of about 65.2 %
