Japanese candlesticks - Tweezers top and bottom

  • 476
  • 0


Tweezer bottom



Definition: A tweezer bottom structure is comprised of two Japanese candlesticks. The first is a large bearish candlestick (red) followed by a hammer doji. The second candlestick opens in a bullish gap and closes at the opening price of the first candlestick.

Illustration:

Tweezer bottom
Characteristic: A tweezer bottom structure often forms after a significant drop characterized by several large red Japanese candlesticks.

Significance: A tweezer bottom is a reversal pattern, it indicates a reversal in the bullish trend. This reflects a battle zone between buyers and sellers before the sellers surrender.

Note: A third candlestick can enter the pattern and it must be bullish, with a small body and be within the range of the second candlestick.

Invalidation: If the next candlestick is not bullish or does not open onto a bullish gap, the tweezer bottom structure is invalidated.

Tweezer top



Definition: A tweezer top structure is comprised of two Japanese candlesticks. The first is a large bullish candlestick (green) followed by a gravestone doji. The second candlestick opens on a bearish gap and closes at the opening price of the first candlestick.

Illustration:

Tweezer top
Characteristic: A tweezer top structure often forms after a significant rise characterized by several large green Japanese candlesticks.

Significance: A tweezer top is a reversal pattern, it indicates a reversal of the bearish trend. This reflects a battle zone between buyers and sellers before the buyers surrender.

Note: A third candlestick can enter the pattern and it must be bearish, with a small body and be within the range of the second candlestick.

Invalidation: If the next candlestick is not bearish or does not open onto a bearish gap, the tweezer top structure is invalidated.

About author

  • 5
  • 21
  • 40
  • 0

Add a comment

no pic

Comments

0 Comments