What Is a Worked Example of Spinning Top?

What a spinning top is

A spinning top is a single-candlestick pattern used in price-action chart reading. In plain terms, it represents market indecision within one time period: prices moved away from the open and toward the close, but the candle ends with the close relatively near the open, producing a small body.

A typical descriptive rule is:

Small real body: the absolute difference between open and close is small.
Relatively long shadows (wicks): the upper shadow (high to the higher of open/close) and the lower shadow (lower of open/close to low) are comparatively long.

Important: there is no single universal standard for “small” and “long.” Different traders and platforms use different thresholds, often based on proportions of the candle’s range. In the example below, those thresholds are made explicit.

Worked numerical example (with assumptions)

Assume we are analyzing one candlestick on a fixed timeframe (for example, one hour). We are not using real-time data; we use invented prices to show the mechanics.

Given candle values

Let:

Open (O) = 100.00
High (H) = 104.00
Low (L) = 96.00
Close (C) = 100.80

Step 1: Compute the real body

Real body size = |C − O| = |100.80 − 100.00| = 0.80

Open/close level distance is small compared with the overall movement.

Step 2: Compute the upper and lower shadows

Define the upper shadow as H − max(O, C):

max(O, C) = max(100.00, 100.80) = 100.80
Upper shadow = 104.00 − 100.80 = 3.20

Define the lower shadow as min(O, C) − L:

min(O, C) = min(100.00, 100.80) = 100.00
Lower shadow = 100.00 − 96.00 = 4.00

Step 3: Express sizes as proportions (one workable standard)

Total candle range = H − L = 104.00 − 96.00 = 8.00

Proportions:

Body proportion = 0.80 / 8.00 = 10%
Upper shadow proportion = 3.20 / 8.00 = 40%
Lower shadow proportion = 4.00 / 8.00 = 50%

Step 4: Apply a simple, explicit “spinning top” criterion

Assume the classification rule for this example is:

Body proportion ≤ 25% of total range
At least one shadow proportion ≥ 30% (and we will observe both are ≥ 30%)

Check:

Body proportion = 10% ≤ 25% ✅
Upper shadow = 40% ≥ 30% ✅
Lower shadow = 50% ≥ 30% ✅

Under these explicit assumptions, this candle qualifies as a spinning top.

How the worked example works in practice

Mechanically, the spinning top label is derived only from O, H, L, C for that one period. The “meaning” comes from the shape:

Traders interpret the long shadows as evidence that price was pushed up and down during the period.
The small body says the final negotiation ended close to the opening price.

However, the interpretation depends on context, because the same geometry can appear in different market situations.

Relevant limitations and risks (what can go wrong)

Classification thresholds vary. Because “small” and “long” are not fixed universally, the same candle may be called a spinning top by one standard and not by another. In the example, we chose 25% and 30% cutoffs; other choices would change outcomes.
It is not a guaranteed outcome. A spinning top is best treated as a description of indecision, not as a prediction of a later direction. A later candle can continue the prior move, reverse sharply, or chop sideways.
Data and charting choices affect the candle. Different data providers, timeframes, and chart settings can produce different open/high/low/close values for the “same” moment, which changes body and shadow calculations.
Execution costs and broader conditions matter. If you later translate the idea into any kind of action, real-world results depend on spread/fees, slippage, and overall market volatility and liquidity. Even if the candle shape is identified correctly, outcomes are still uncertain.

How to verify this independently

To verify the worked example, recompute the three measured components directly from the assumed O/H/L/C values:

Body = |Close − Open|
Upper shadow = High − max(Open, Close)
Lower shadow = min(Open, Close) − Low

Then check the proportions against the stated thresholds (25% for the body and 30% for shadows). If you use a different threshold set, document it and reclassify; the candle’s geometry is the constant, but the label can vary.