Tweezer Top and Bottom Candlestick Patterns 
A Tweezer Top is a bearish reversal candlestick pattern that appears at the end of an uptrend. It signals that buyers are losing momentum, and sellers may take control.
Formation: Two consecutive candlesticks with nearly the same high price. The first candle is bullish (green) with an upward move. The second candle is bearish (red) and opens near or at the previous high but closes lower.
Significance: Indicates strong resistance at the high point. Suggests that the uptrend might be weakening. Often leads to a price reversal, especially if followed by further bearish confirmation.
Tweezer Bottom Pattern (Bullish Reversal) Definition: A Tweezer Bottom is a bullish reversal candlestick pattern that appears at the end of a downtrend. It signals that sellers are losing momentum, and buyers might push the price higher.
Formation: Two consecutive candlesticks with nearly the same low price. The first candle is bearish (red) with a downward move. The second candle is bullish (green) and opens near or at the previous low but closes higher.
Significance: Indicates strong support at the low point. Suggests that the downtrend might be ending. Often leads to a price reversal, especially with additional bullish confirmation.
Confirmation: Stronger when supported by high trading volume. Other bullish patterns like a
Bullish Engulfing or
Hammer increase reliability.
Trading Strategies for Tweezer Top and Tweezer Bottom Patterns Tweezer Top Trading Strategy (Bearish Reversal) Entry: Enter a
short trade after the second bearish candle confirms the pattern.
Stop-Loss: Place a stop-loss above the high of the tweezer top formation.
Take-Profit: Set a target at the nearest support level or use a risk-reward ratio of at least 1:2.
Confirmation Indicators: RSI (Relative Strength Index): If RSI is above 70 (overbought), the reversal signal is stronger.
MACD (Moving Average Convergence Divergence): A bearish crossover strengthens the confirmation.
Volume: Increasing volume on the second candle increases reliability.
Tweezer Bottom Trading Strategy (Bullish Reversal) Entry: Enter a
long trade after the second bullish candle confirms the pattern.
Stop-Loss: Place a stop-loss below the low of the tweezer bottom formation.
Take-Profit: Set a target at the nearest resistance level or use a risk-reward ratio of at least 1:2.
