Tweezers Bottom

Tweezers Bottom

The Tweezers Bottom is a two bar bearish reversal pattern that may indicate a reversal at the end of an downtrend.It is composed by a down-close followed by an up-close. The near identical lows of the two bars is the basis for the pattern name, forming a tweezer bottom. Review the video below to learn more:

What is the Tweezers Bottom Pattern

The first bar of the pattern is a large body down-close whereas the second is either a small or a large body up-close. The average bar size is established by a reference period set in the indicator dialogue box.

When identified as a reversal pattern, theTweezers Bottom will occur during a minor bullish swing trend. The minimum swing trend deviation requirement is user selectable. Finally, the maximum permitted difference between the two bar lowsis also adjustable, set as a fraction of the body average. The bearish equivalent to this pattern is the Tweezers Top.

However, as with other reversal patterns, they should be combined with other technical tools, such as advanced momentum oscillators, volume analysis or channel indicators to confirm. An example on how to do that was discussed in this post.

Other bullish candlestick patterns

Other bullish candlestick patterns include the bullish belthold, bullish engulfing, bullish harami,bullish harami cross, white marubozu, bullish piercing, bullish hammer, dragonfly doji, inverted hammer, morning star, morning doji star, long white candle, three white soldiers and the rising three methods.

TheTweezers Bottom and all of the above patterns may be identified with our candlestick pattern indicator for NinjaTrader 8. Check out the LizardIndicators Premium Section for more information.