This article is about the Tweezers trade pattern. This candlestick pattern is used to signal a correction or reversal in the current trade.
This candlestick pattern can be referred to as a reversal. This pattern can be seen on the charts of many financial instruments, including currency pairs, stocks and futures. This pattern is made up of two candlesticks with the same highs or lows.
If Tweezers is a reversal, they will either appear at top in an uptrend or bottom in a downtrend. This pattern is based upon a traditional tech analysis principle. If the price does not reach the support/resistance level two times, it becomes highly probable that a correction or a reversal will occur.
Tweezers is a tool that allows you to see the extremes of both candlesticks. It is permissible to make a slight difference in the time frame, but it is not important.
It can be either Tweezers Top, or Tweezers Bottom depending on whether the pattern forms on highs or lows.
This bearish pattern forms following an upward movement on the local price chart's hish. The pattern's first candlestick is usually bullish and has a white body with an upper shadow. The second candlestick can be either large or small in body. A Doji candlestick, on the other hand, may have no body at all. The pattern has the same height for both candlesticks.
The price bounces off the strong resistance level at the second candlestick. This indicates that bears are attempting to take the initiative. A correction is underway if prices continue to fall. The correction begins when the quotations fall below the low point of the completed pattern.
Tweezers Bottom, a bullish pattern, appears at the local lows on the price chart following a downtrend. The first candlestick is usually bearish and has a black body with a prominent lower shadow. The second candlestick can be either large or small in body. A Doji candlestick, on the other hand, may have no body at all. The pattern candlesticks must all have the same low.
The price bounces off the support level for the second consecutive time as the second candlestick forms. This indicates that bulls are keen to stop the decline, and begin advancing. The beginning of an ascending correction is indicated by further growth in the quotations. The growth in the price above the candlestick pattern's high is a sign of power for the bulls.
Tweezer is a reversal pattern of candlesticks. Look for it after an ascending or decending movement on the price chart. This pattern is less effective in a flat so avoid it. Start from H1. Any liquid asset that has acceptable volatility can be used.
This is the algorithm for trading using the bullish pattern:
This is the bearish pattern:
The pattern can be enhanced by a variety of factors, such as: It makes it more likely.
After an ascending or decending momentum, you will find tweezers at the local lows or highs of your chart. It can predict a correction, or even a reversal in the current trend. The probability of a decent correction increases if there are supporting factors.
Tweezers are great for tech analysis patterns, support/resistance levels, and trading indicators. Before beginning real trading, practice on a demo account.
You can find more information about other candlestick patterns in our blog.
Candlestick Analysis on Forex: Main Principles, Application Options