Tweezers Top

Tweezers Bottom

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

What is theTweezers Top Pattern

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

When defined as a reversal pattern, theTweezers Top 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 highs is also adjustable, set as a fraction of the body average. The bullish equivalent to this pattern is the Tweezers Bottom.

However, as with other reversal patterns, thepatterns 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 bearish candlestick patterns

Other bearish candlestick patterns include the bearish belthold, bearish engulfing,bearish harami, bearish harami cross, black marubozu, dark cloud cover, shooting star, gravestone doji, hanging man, evening star, evening doji star, long black candle, three black crows and the falling three methods.

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