Spinning Top

Overview

A spinning top or (koma) is a candlestick which the body of the candlestick is smaller than the lower and upper wicks. This candle represents a neutral position in which neither the bulls or bears are able to gain control during the trading session. The color of the real body is irrelevant as the body of the candle is so small. If a spinning top arises after a strong uptrend or downtrend, it is an early sign that the trend could be reversing. Traders should wait for more confirmation that the trend is changing prior to taking a short or long position.

Spinning Top

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Al Hill Administrator
Co-Founder Tradingsim
Al Hill is one of the co-founders of Tradingsim. He has over 18 years of day trading experience in both the U.S. and Nikkei markets. On a daily basis Al applies his deep skills in systems integration and design strategy to develop features to help retail traders become profitable. When Al is not working on Tradingsim, he can be found spending time with family and friends.
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