Tweezers are two candles with matching highs (top) or matching lows (bottom). Like a pair of tweezers pinching the price.
Tweezer bottom (bullish)
After a decline. Two candles hit the same low: sellers tried twice and failed.
Tweezer top (bearish)
After a rally. Two candles hit the same high: buyers tried twice and failed.
Wick says
Twice the same price, twice the same failure. Markets, like people, sometimes need to hit the wall twice to get the message.
Key takeaways
- Matching highs = tweezer top; matching lows = tweezer bottom.
- Best when the second candle reverses colour.
- Stop goes beyond the shared high or low.