Tweezer tops and Tweezer bottom: Line of control for a trend

trend


Tweezer tops and Tweezer bottom is yet another kind of candlestick pattern that can help you identify trend reversal.

You would notice that there are so many candlestick patterns showing the same trend reversal signals. You would be happy to know that candlestick not only helps you to identify trend reversal but also suggest a better time to get influenced by the market.

Here, I am going to share some key features about tweezer tops and bottom candlestick.

They help to identify both uptrend as well as downtrend as per their location.

This has a similar feature with inverted hammer and shooting star. Both looks same but interpret differently when found in different locations.

These are  2 candlestick patterns and as the name suggest forms a tweezer when seen combined.

Usually, this particular type of pattern is not easily found in the chart but can be very helpful when analyzing charts. It serves very well when analyzing chart with head and shoulder or double bottom etc.  

Physical appearance and Interpretation

They both are formed with almost similar physical appearance having their own technical interpretations.

Here the separate elaboration description is shared for you.

Tweezer Bottom

This is formed by 2 candlestick first one being bearish and the other one being bullish.

The key feature of this 2 candlestick pattern is they both share the same value of the close price of the bearish candlestick with the open price of the bullish candlestick.

This is formed after a downtrend and with tweezer bottom, you can assure that trend is going to become bullish in coming sessions

The image below describes the same scenario

tweezer bottom


Here you need to take care that the market where gets closed at the same price market gets opened in next session makes it a tweezer bottom. A shadow or downfall from close price is not considered as a tweezer bottom.

Tweezer Top

As I said the physical appearance remains the same which you can find in below

tweezer top

The difference here you will find is that the first candle is bullish and the second candlestick is bearish. The close price of the bullish candle is where the market stops and the same price forms the open price for the bearish candle and starts downtrend without forming any shadow above the open price.

This need to be taken care that tweezer top formation takes place after an uptrend and is the signal for start of a bearish trend.

Key points to remember for tweezer tops and tweezer bottom

    1. 2 candlestick pattern
    2. Share same open and close price
    3. Tweezer tops forms after an uptrend while tweezer bottom is formed after a downtrend
    4. The end and start price of both the candlestick needs to be same, any shadow formation will not make it a tweezer candlestick




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Bottom line

Though it is not very well or frequently found in the chart but very helpful in analyzing the whole candlestick chart like in head and shoulder or double bottom double top patterns This patterns when identified can make you reconfirm of a trend reversal.

Post Author: Sushant Putatunda

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