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