When the bulls drive the price higher than the starting price, the bears push it back down before the market ends, a spinning top candlestick forms. Alternatively, when negative traders drive prices lower than the open price then optimistic traders drive prices back up before the market ends.

In other words, the market has examined both upward and downward alternatives before settling at around the same starting price, resulting in no noteworthy change.

A spinning top candlestick forms when there is a small difference between the opening and closing prices of an asset within a given period, creating a short body. It features long upper and lower wicks, indicating significant price movement in both directions during the session. This pattern shows that neither buyers nor sellers have gained a clear advantage, reflecting market indecision.

Spinning tops often appear in trends and can signal potential reversals or pauses. In an uptrend, it may suggest weakening bullish momentum, while in a downtrend, it might indicate bearish exhaustion. However, traders should confirm the signal with additional indicators or candlestick patterns to improve the reliability of their analysis before making decisions.