The Tweezers Top and Tweezers Bottom Patterns

Tweezers Top and Tweezers Bottom
Tweezers Top and Tweezers Bottom

The Tweezers pattern is a minor trend reversal pattern that consists of two candlesticks with more or less the same high or a same low or some variation thereof. It is the only candlestick pattern where the highs or lows are the most important factor rather than the body or the shape of the candles. If the tweezers pattern appears in an uptrend, it is called a Tweezers Top and should have the same high. If it appears in a downtrend it is called a Tweezers Bottom and should have the same low. In addition, the two candlesticks should have alternating colors with the first confirming the current trend and the second indicating weakness. The pattern is more reliable when the first candlestick is has a large real body while the second candlestick has a short real body. It is also more reliable when the Tweezers pattern is confirmed or makes another pattern, such as an engulfing or piercing pattern with identical highs or lows.

Tweezers Top

The Tweezers Top pattern appears in an uptrend. The first candlestick in this pattern should be a bullish candlestick with a large real body followed by a bearish candlestick with a short real body. The two candlesticks must have either the same high or their real bodies should be at the same high level. The pattern is more reliable when seen in the context of the broader price chart with the pattern appearing at market highs, or near resistance or trend lines.

Tweezers Bottom

The Tweezers Bottom pattern appears in a downtrend with the first candlestick being a dark, bearish candlestick with a large real body, followed by a bullish candlestick with a short real body. The two candlesticks must have either the same low or the bottom of their real bodies should be at the same level. The pattern is more reliable when it appears at market lows, or near support lines or at lower trend lines.


Hanging Man / Hammer

Hammer Pattern
Hammer Candlestick

The Hanging Man and Hammer candlestick patterns are related trend reversal patterns that may appear at the end of an uptend or downtrend respectively. This is a single candlestick pattern that with a short real body, little or no upper shadow and a long lower shadow that must be at least twice as long as length of the real body. The color of the candle is not import, only its location in the current trend.

The Hammer pattern is called a takuri in Japanese, which means testing the water for its depth. This is the bullish version of the pattern. A bearish ...

Dark-Cloud Cover

Dark-cloud Cover
Dark-cloud Cover

The dark-cloud cover pattern is the opposite of the piercing pattern and appears at the end of an uptrend. It is a dual candlestick pattern with the first candlestick being light in color and having a large real body. The second candlestick must be dark in color, must open higher than the high of the first candlestick and must close down, well into the real body of the first candlestick. The deeper the second candlestick penetrates the first, the more reliable the pattern becomes.

The dark-cloud cover pattern is also more reliable when it appear at or near a resistance line ...



Belt Hold Lines

Belt Hold Lines
Belt Hold Lines

The Belt-Hold candlestick pattern is a minor trend reversal pattern. It is a single candlestick pattern that consists of a Marubozu candlestick that can be bullish or bearish. A bearish belt-hold line consists of a single dark candlestick that opens at or near its high and closes at or near its low, while a bullish belt-hold line consists of a single rising candlestick that also opens at or near its high and closes at or near its low.

The length of these candlesticks indicates the extent of its significance, which is further enhanced when it appears near market extremes as in an ...

Star Patterns

Evening Doji Star
The Evening Doji Star

Star patterns are trend reversal patterns that consist of three candlesticks, with the middle candles stick forming the star. A star is a candlestick with a short real body, like a doji or a spinning top, that gaps away from the real body of the preceding candlestick. There are three basic star patterns: the morning star, which appears in a downtrend; and the evening star and the shooting star, which appear in an uptrend.

The morning star and the evening star have a doji or a spinning top as the second candle...


Continuation Patterns

Continuation Patterns
Three Methods

Continuation patterns indicate that there is a greater probability of the continuation of a trend than a trend reversal.. These patterns are generally formed when the price action enters a consolidation phase during a pre-existing trend. During the consolidation phase, the trend appears to change; however, the continuation of the preceding trend is more probable.

Some of the common continuation patterns include the cup and handle pattern, flags and pennants, symmetrical triangles, ascending triangle and desc...


Reversal Patterns

Trend Reversal Patterns
Harami Pattern

Reversal patterns mark the turning point of an existing trend and are good indicators for taking profit or reversing your position. Generally, trend reversal patterns indicate that a support level in a downtrend or a resistance level in an uptrend will hold and that the pre-existing trend will start to reverse. These patterns allow you to enter early in the establishment of the new trend and are usually result in very profitable trades.

The common reversal patterns include the double tops and double bottoms, triple tops and triple bottoms, broadening tops and broadening bottoms, ...


Recommended Reading: