Tweezer is a two bar reversal pattern that is used to catch the tops or bottoms. The Tweezer Top is defined by a two bars where the highs and lows of both the bars are same but the first bar must be bullish and the second bar a bearish one. The Tweezer Bottom is defined by two candles with the same highs and lows where the first candle is a bearish bar followed by a bullish bar. The same high (or low) suggests supply pressure (or demand) at that level in the short term.
Most Used Trends of Tweezer Pattern
Advantages & Limitations of Top & Bottom Tweezer Pattern
None of the Tweezer Top or Tweezer Bottom is a pattern with an excellent success rate. Many traders consider the size of the second candle to be insignificant and only the same high (top) or the same low (bottom) as the most important thing. On the other hand, the success rate increases considerably if the first candle is long in size and the second candle is of the same size too. Like most other patterns, this performs much better if the trend remains in favour. The success rate of Tweezer Top increases at the top of a corrective rally in a major downtrend and vice versa for the Tweezer Bottom.