Tweezer Tops

Candlestick Tweezers Tops Pattern
Bearish Reversal - Sell Signal
(if highs are not broken)

Candlestick Patterns

The Tweezers pattern is the only candlestick pattern that is based on the highs or lows and not the body of the candles or the shape of the candles. The Tweezers Tops pattern occurs when two candles form with the exact same high price. These two candles can be side-by-side, or separated by a few other candles.

The Tweezers Tops pattern identifies a resistance level at the high prices. When the Tweezers Tops pattern confirms with a black candle that closes lower, a lower high and a lower low, the Tweezers Tops pattern will generate a sell signal.

Investors should also notice that Tweezers patterns are VERY common in thinly traded markets and can also be found within congestion bands. Investors should ignore the Tweezers patterns within a thinly traded market and should pay close attention to Tweezers patterns within a congestion band. Tweezers patterns within a congestion band can be used to determine where and when previous support and resistance levels identified by the Tweezers patterns has been broken. Once these support and resistance levels have been broken, investors should watch for the market to continue higher or lower from these levels.

  Matheny Enterprises Site Directory