Model Tweezer Top / Tweezer Bottom aka Tweezers / Bottom Tweezers appearing quite a lot on the price chart, they signal a trend reversal. However, the reliability here is not high. So you need to understand and take note of these two patterns in order to use them more effectively.

What is Tweezer Top / Tweezer Bottom?

Tweezer Top (Tweezers Top) is a bearish reversal pattern, consisting of two or more candles with equal candles top.

In contrast, the Tweezer Bottom model shows a bullish reversal signal, consisting of two or more candlesticks with an equal bottom.

Features of Tweezer Top / Tweezer Bottom

Some traders believe that the Peak Tweezers pattern must have the closing price of one candle equal to the opening price of the other. However, from reputable research sources combined with trading experience, we find this unnecessary. There is also an opinion that the color of two candles must be opposite, although this is usually the case but sometimes there are exceptions. Therefore, to summarize, we list the necessary features of the Tweezer Top model as follows:

Appears in an uptrend, giving a reversal signal from up to down
Includes 2 or more candles
The top of the candles must be equal or nearly equal, forming a resistance.

In contrast, the Tweezer Bottom model has the following characteristics:

Appears in downtrend, showing a reversal signal from decreasing to rising.
Includes 2 or more candles
The bottom of the candles must be equal or nearly equal, forming a support.

Top / Bottom Tweezer appears on the trading charts but the reliability of these two models is not high. Therefore, you need to combine other indicators to confirm the reversal signal.

Psychological movements of the Tweezer Top / Tweezer Bottom models

Psychological movements of the Tweezer Top model: In an uptrend, the seller pushed the price up and reached a new peak. In the next session, the market once again brought the price to touch the previous high level but could not overcome, eventually going down. This movement indicates that the buyers have started to take profits or the sellers are getting stronger as the price approaches the resistance.

Psychological movements of the Tweezer Bottom model are similar to the above but in the opposite direction.

Actual example of Tweezer Top / Tweezer Bottom model

Here is an example of Tweezer Bottom. As you can see, the Double Tweezers pattern has appeared twice at the bottom of the price with the bottom characteristics of the two candles being equal. At the first time, prices have rebounded quite sharply. For the second time, the price just moved up slightly before continuing the downtrend.

Trading guide with Tweezer Top / Tweezer Bottom models

Entry point command

When the Tweezer model appears, if there are additional support signals, you can enter the order as soon as the second candle of the pattern ends. With Tweezer Top, we enter the sell order, with Tweezer Bottom, we enter the buy order.

Below is an example of how to enter an order on the GBPUSD chart, frame H4. On this illustration, there are 2 successful Tweezer Top models.

As mentioned above, the Tweezer model is not very strong signal, so you need to analyze many other factors. Both of the trading opportunities in the example below have quite similar characteristics.

We see the Tweezer Top is created by a bullish candle, followed by a very strong bearish candlestick. The entire profit of the buyer in the previous session has been completely wiped out in the subsequent session. Also, the lower bearish candlestick has no lower shadow. These are additional bearish signals. Therefore, we enter the sell order as soon as the second red candle closes.

How to set stop loss and take profit with Tweezer Top / Bottom model

The stop loss is placed on top of the Tweezer Top / Bottom model, so the stop loss here is only about the height of a candle. Resistance should be set at the strong support zone closest to the price.

summary

We have just introduced you to the concept, characteristics as well as trading, with examples of Tweezer Top / Tweezer Bottom candles. Hope you know how to identify and use these two patterns. Good luck!

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Author: Tin Nguyen

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