Spinning Bottom Candlestick: The Underrated Bullish Reversal Signal You Need to Know

 

Tucked quietly at the end of a market selloff, the Spinning Bottom candlestick often goes unnoticed—yet it can be one of the earliest hints that a downtrend is losing steam. Unlike flashy reversal patterns, the Spinning Bottom doesn’t announce a turnaround with certainty. Instead, it reveals a subtle but critical shift: sellers are fading, and buyers are testing the waters.

Visually, it features a small real body—ideally green—positioned near the top of the candle’s range, flanked by long upper and lower wicks. The lower shadow is typically longer, showing that price plunged early in the session but was aggressively bought back. This recovery, even if incomplete, signals that bears failed to maintain control.

Crucially, the Spinning Bottom only matters when it appears after a clear downtrend. In sideways or uptrending markets, it’s just noise. But at the bottom of a decline, it becomes a potential beacon of reversal—especially when paired with confirmation.

Don’t confuse it with the Spinning Top, a neutral pattern with a centered body that reflects general indecision. The Spinning Bottom is context-specific and bullish-leaning, with its body skewed toward the high—indicating resilience.

Because it ends near the open (not a strong close), the Spinning Bottom is not a standalone buy signal. Smart traders wait for the next candle to close above its high, ideally on rising volume. This confirmation proves that bulls have taken the reins.

For example, during the 2023 banking crisis, several financial stocks formed Spinning Bottoms after steep drops. Those that followed with strong green confirmation candles often led multi-week rallies—offering timely entry points for risk-managed traders.

To increase reliability, layer the pattern with confluence:

• Is it forming near a historical support level or a round number like $30?
• Is the RSI deeply oversold (<30), suggesting exhaustion?
• Is volume picking up on the recovery?

Risk management is essential. Place your stop-loss just below the low of the Spinning Bottom to protect against false breakouts. For profit targets, consider previous resistance zones or apply a minimum 1:2 risk-reward ratio.

The Spinning Bottom is most trustworthy on daily or weekly charts, where market noise is filtered out. On 5-minute or 15-minute timeframes, similar candles often appear due to random volatility—not genuine sentiment shifts.

While less aggressive than the Hammer (which has almost no upper wick), the Spinning Bottom offers a more nuanced view: the market is volatile, but the tide may be turning. It’s ideal for traders who prefer early, high-reward entries over waiting for full confirmation patterns.

In essence, the Spinning Bottom isn’t about certainty—it’s about opportunity. It captures the fragile moment when fear peaks and value emerges. By respecting its need for confirmation and combining it with technical confluence, you can transform this understated candle into a strategic advantage—buying strength just as the downtrend begins to crack.