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Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30+ years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at

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Bulkowski's White Spinning Top

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Busted
Patterns
Candles Chart
Patterns
Event
Patterns
Small Patterns
Market
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 03/27/2017
20,551 -45.74 -0.2%
8,935 6.33 0.1%
702 -3.50 -0.5%
5,840 11.63 0.2%
2,342 -2.39 -0.1%
YTD
4.0%
-1.2%
6.5%
8.5%
4.6%
Tom's Targets    Overview: 03/14/2017
20,100 or 21,250 by 04/15/2017
8,500 or 9,500 by 04/15/2017
675 or 715 by 04/01/2017
5,950 or 5,650 by 04/15/2017
2,275 or 2,425 by 04/15/2017
Mutt Losers: None YTD
Mutt Winners: None YTD

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

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The white spinning top acts randomly. Thus, you cannot tell ahead of time which way price will breakout. Its frequency ranks second only to the black spinning top and that means it is as prolific as bugs in your garden. Overall performance ranks a distant 69, where 1 is best out of 103 candlestick patterns. Once price breaks out (a close above the top or below the bottom of the spinning top) it does not trend far before reversing. I really do not see any benefit to this candle.

White Spinning Top: Important Results

Theoretical performance: Indecision
Tested performance: Reversal 50% of the time
Frequency rank: 2
Overall performance rank: 69
Best percentage meeting price target: 83% (bull market, up breakout)
Best average move in 10 days: -3.63% (bear market, down breakout)
Best 10-day performance rank: 58 (bear market, down breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal white spinning top candlestick
White Spinning Top
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White Spinning Top: Discussion

The white spinning top is an unremarkable candle, so let me tell you about it (that's a joke). It has a small white body but tall shadows and it acts randomly. That means the breakout can be with or against the prevailing price trend equally.

The best average move 10 days after a breakout is a drop of 3.63% in a bear market. A good move would be 6%, so the white spinning top falls well short of that.

White Spinning Top: Identification Guidelines

CharacteristicDiscussion
Number of candle linesOne.
Price trend leading to the patternNone required.
ConfigurationLook for a small white bodied candle with tall shadows.
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White Spinning Top: Three Trading Tidbits

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. White spinning top candles that appear within a third of the yearly low perform best -- page 705.
  2. White spinning tops with shadows taller than the median outperform those shorter than the median -- page 706.
  3. Volume gives performance clues -- page 706.

White Spinning Top: Example

Black and white spinning top candlesticks on the daily scale

The chart shows black and white spinning tops on the daily scale. The candle at A is a black spinning top because the body is black, small, and the candle has shadows taller than the body. This one occurs in a downward price trend, but the breakout is upward. Thus, it acts as a reversal. And a breakout occurs when price closes either above the top or below the bottom of the candlestick.

Candle B is a white spinning top that appears in an upward price trend. Notice the small white body and tall upper and lower shadows. Price breaks out upward from this spinning top two days later, meaning the spinner acted as a continuation of the up trend.

Candles C, D, and E are also black spinning tops. Candles C and E act as continuations of the downward price trend whereas candle D is a reversal. Price enters and exits the candle from the top.

-- Thomas Bulkowski

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Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Well, this day was a total waste of makeup.