Valid 'Tweezer' Candlestick Pattern
The tweezer pattern is a minor trend reversal pattern consisting of two candlesticks with approximately the same high or the same low or some other variation. This is the only candlestick pattern where the highest level or the lowest level is the most (more) important factor of the real body or candle shape and one of the most powerful ways traders can do to detect reversal is to use a top and bottom tweezer pattern.
A tweezer is formed with a candlestick body that is visible from the difference between the opening and closing prices. If there is a shadow on the tweezer at both ends of the candle it will be marked with high and low prices for that period. Tweezers are usually located above and below, have patterns that indicate the presence of a trend reversal although the wider context usually requires additional candles to confirm the signal. The tweezer pattern above often occurs when the two highest candles are almost exactly at the same level. The tweezer pattern below occurs when there are two candle lows that occur at almost the same level after the decline. There are two kinds of tweezers, namely top tweezers and bottom tweezers.
Tweezer Bottom Pattern
Tweezer bottom is a bullish reversal pattern group consisting of two candles preceded by a downtrend pattern. If a tweezer bottom is formed, it indicates that a reversal will occur to an uptrend, and when this pattern is formed, traders should take a long position and wait for a tweezer top pattern to form to take profit or sell.
Tweezer battom has the following characteristics:
· Consists of two candles
· Preceded by a downtrend
- The first candle is red
· And, the second candle is green
· The end of the lower tail (low) both flat or the same
Top Tweezer
The tweezer top is included in the category of bearish reversal patterns that are preceded by uptrends. Tweezer top features:
· Consists of two candles
· Preceded by an uptrend
- The first candle is green
- The second candle is red
- The top of the tail (high) is both even or the same
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