Learn Tweezer top candlestick pattern to increase trade accuracy. They are called multiple candlesticks where the high of candlesticks are equal. Tweezer bottoms are candlesticks where the lows of candlesticks are equal. They will create a tweezer top/bottom that is made of real bodies/ shadows. Tweezers should not be considered as reversal patterns in and combined with other candlestick patterns.
The tweezer bottom pattern is a bullish reversal pattern. The first day is marked by a red candlestick when a downtrend is in progress. On the second day, low appears the same as the previous day.
The second candle is high indicates a resistance area. The bulls seem to push the price upward as they are not willing to purchase above the high rate. The bears force their way in leading them to return with force and drive down the price. The top-most candles have identical height demonstrate the strength of the resistance, indicating the uptrend. It may pause/reverse and form a downtrend. The trend reversal is confirmed on the third day when bearish reversal candles are created.
The stock market is being on an existing downtrend. A solid red body is then observed on first day. The formation of a green body occurs on the second day same as the low of the previous day
The second candle low indicates a support area. While the bears push the price down as they are not willing to make the sale below the lower price. The bulls step to action and return as a force to drive the price upward. Here identical low of both candles demonstrates the support strength, indicating that the downtrends may reverse or pause. The third day’s bullish reversal candle is formed and confirms the fact that the trend has reversed.
view moreTweezers are effective when it is found at established support/resistance. Tweezers are used to confirm an entry and effective when in line with the overall trend. Tweezers are signs of a potential reversal as an ideal application for placing an entry order when a tweezer is developed at the competition of a short-term correction of a longer-term trend. A tweezer bottom is formed at the time of increasing the odds of a bullish reversal.
Candlestick patterns can occur in financial markets, and tweezers are no exception. It is based on the overall condition as their appearance can be unimportant/ trade worthy. Suppose the overall trend is in place then tweezer occur a pullback. The signals a potential entry point. The pattern will indicate the pullback as over. The price moves in the trending direction again. Using tweezers is entering on a pullback in alignment with the overall trend as the success rate for pattern improvement. For a bottom pattern, a stop loss is placed below the tweezers lows. For a topping pattern, the stop can be placed above the tweezer high. Tweezers do not provide a profit target so the target is based on other factors as the trend and overall momentum.
The Tweezers Top and bottom candlestick pattern take appearances but have a few common traits which appear at market-turning points. To know more about these patterns and gain expert go to different websites and learn.
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