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Tweezer Top Candlestick Pattern: A Forex Trader’s Guide

The Tweezer top candlestick pattern is a reversal candlesticks pattern that has two different colour candlesticks. The first candlestick’s closing price will be identical to the initial price of the second candlestick. The first candlestick of the tweezer top will be positive, while the second candlestick of the tweezer top will be negative. Bullish and bearish candlesticks in the tweezer top do not have wicks on the upper side.

Tweezer Top Candlestick Patterns

The tweezer top is a price trend reversal pattern that shifts the price trend from positive to negative. The tweezer top pattern is often utilized by retail traders to anticipate future trends using technical analysis due to its high success ratio. We can say that a tweezer top is another type of pin bar candlestick.

How to find Tweezer top candlesticks?

Follow the steps below to locate a perfect tweezer top on the price chart.

  • The peak and closing prices of a bullish candlestick should be the same. It should have a body size greater than sixty percent because body size shows vendor momentum.
  • The high and open price of the bearish candlestick should be the same. It should open at the close price of a bullish candlestick and have a body size greater than sixty percent of the overall candle size.
  • The closing price of a bearish candlestick must be less than fifty percent of the closing price of a bullish candlestick.

Resistance

The third step is required since closing, and opening prices are important in technical analysis. The construction of the tweezer top candlestick pattern is quite basic and easy to grasp, but you will need to follow guidelines to overcome psychological hurdles on the live price chart.

Call to action

Comparison with the Pin Bar

The pin bar pattern is mostly created by tweezer top patterns over longer time frames. If the tweezer top pattern appears, for example, in thirty minutes, a pin bar will appear at one hour because the starting and closing prices of candlestick patterns are crucial. Tweezers top also create a pin bar on a longer timescale, similar to engulfing candlesticks.

Tweezer Top Candlestick

The pin bar candlestick pattern is very significant and has a high winning ratio because of this quality.

Information Table of Tweezer top Pattern

Structure Description
Quantity of Candles Two
Prediction Reversal of the bearish trend
Prior Trend Bullish Trend
Counter Pattern Tweezer Bottom

Tweezer Top Psychology Technique

According to the psychology of the Tweezers top, when a market is in a negative trend and fails to produce lower lows, it might indicate the end of one trend and the start of another.

Tweezer Top

A reversal pattern known as the Tweezers top occurs when the market is unable to achieve a lower low. Usually, two candles appear after a common bearish pattern. Any form is possible for them, and they might even be a component of another candlestick design.

Best way to trade the tweezer top

The tweezer top candlestick cannot be utilized to benefit from the currency market on its own because many fake candlestick shapes will form under fluctuating market circumstances.

Therefore, we have included two confluences, namely the Fibonacci golden zone and the resistance zone, in order to prevent misleading price patterns.

Call to action

Resistance Zone

The price chart’s resistance zone has the power to change the price trend. However, if a tweezer top develops near the resistance zone, the potential of both price patterns will combine, creating trade ideas with a high chance. A strong likelihood of a trend reversal exists for candlestick patterns that exhibit a false breakout by a wick or shadow at the resistance zone and then close below the resistance level.

Resistance Zone

Fibonacci Golden Zone

This zone has a strong likelihood of changing the market trend. A tweezer top at the zone will boost the likelihood of a price trend reversal. Because of Fibonacci’s golden zone, it is usually advisable to employ a candlestick pattern in conjunction with other price patterns.

Tweezer

Main Points

  • Two candlesticks are used in the trend-reversal pattern known as the “Tweezer Top Candlestick.”
  • A bearish reversal is represented by a Tweezer top candlestick pattern.
  • The formation of tweezer candlestick patterns on the graphs should alert traders that a reversal is about to occur.
  • The creation of the tweezer candlestick pattern should be verified by traders using other trend indicators.

Call to action

Conclusions

Another method to confirm a sell transaction is to utilize the tweezer top candlestick pattern. A candlestick pattern may be used in a variety of ways for technical analysis, but it is most effective when you understand the psychology underlying it.

By including filters like moving averages and other confluences, you should aim to optimize your trading approach. Before using this candlestick pattern for technical analysis, be sure you back-test it at least a hundred times.

Saman Ali

Saman Ali is a Professional Financial Researcher, Quantitative Analyst and an Experienced Writer for more than 5 years. Saman’s main passion is for Cryptocurrencies, Stocks, Forex and Blockchain Technology. She holds an MBA in Finance and has specializations in producing high quality content about Cryptocurrencies, FX, Broker’s review, Price Predictions, Fundamental & Technical Analysis, and Educational Content.

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