Tweezer top and bottom candlesticks

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What are the tweezer top and bottom candlesticks?

The tweezer top and bottom candlesticks are used to indicate a reversal in price. The pattern consists of two candlesticks, one bullish candlestick and one bearish candlestick. These patterns work best when present at key levels of support and resistance adding to the probability of a trend reversal.

Tweezer tops

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Tweezer tops

Tweezer tops are bearish reversal patterns, this pattern appears at the end of a strong bullish trend. The first candle opens and immediately continues upwards before pulling back producing a visible wick above the main body of the candle, the second candle opens at the close of the first body then moves up retesting the high of the first candles wick before pulling back and further falling creating a bearish candle closing below the close of the first candles main body.

Tweezer Bottom

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Tweezer bottom

Tweezer bottoms are bullish reversal patterns, this pattern appears at the end of a strong bearish trend. The first candle opens and immediately continues downwards before pulling back producing a visible wick below the main body of the candle, the second candle opens at the close of the first body then moves down retesting the low of the first candles wick before pulling back and further rising creating a bullish candle closing above the close of the first candles main body.

How to trade tweezer tops and bottoms

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Trading the tweezer candlestick pattern

To trade the tweezer candlestick patter it is first best to wait for price to reach a key level of support or resistance adding to the probability for a reversal. When price reaches this point and a tweezer pattern has formed a sell can be entered at the bottom of the second candle of a tweezer top pattern with stops above the highest wick and a buy at the top of the tweezer bottom pattern with stops below the lowest wicks of the pattern.

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