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Understanding Candlesticks_9. Tweezer Tops and Bottoms

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Published by yaniv, 2021-09-27 09:38:29

Understanding Candlesticks_9. Tweezer Tops and Bottoms

Understanding Candlesticks_9. Tweezer Tops and Bottoms

Lesson 9: Tweezer Tops and Bottoms

Another of the two candlestick bearish reversal patterns - is Tweezer Tops. It
consists of two candles that have approximately the same highs. Technically, a
Tweezer Top does not need to have long upper shadows - but the signal works
better if it does.

Let’s take a look at how tweezer tops form: prices are driven up by the bulls, but
after meeting resistance, bears push the price down towards its opening price.

The next session is exactly the same. Bulls manage to drive the price up once
more but the test is unsuccessful, as bears take control and push the price back
down again - managing to close near or at the session’s low.

Notice that candlesticks can be reversed but their reversal signal will be stronger
if the second candlestick is bearish - like this one.

A Tweezer Top is a bearish reversal signal, so we will only look for it in an
up-trend. On the flip side of a trend, we find the opposite signal which is called a
tweezer bottom and this is a bullish reversal signal.

The best thing about tweezer tops and bottoms is that the signal clearly shows
strong support or resistance. Remember - any support or resistance level gets
stronger the more times it has been tested; with this candle signal we get two tests in
a row which makes the resistance or support level even stronger than before.

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