A Tweezer Bottom is a bullish reversal pattern that occurs at the bottom of a downtrend and consists of two Japanese candlesticks with matching bottoms.
The matched bottom usually consists of the shadow (or wick), but can also be the body of the candle.
Tweezer bottoms occur in a downtrend when sellers push the price lower, often ending the trade near the low, but are unable to push the bottom further down.
Tweezer bottoms are considered short-term bullish reversal patterns and mark market bottoms.
Accreditation standards
To identify the bottom of the tweezers, check out the following criteria:
- There must be two or more consecutive candles of any color.
- There should be a clear downtrend.
- Both candles must reach the same low .
Once a downtrend occurs, just look for candles with the same low.
While you shouldn’t completely ignore the body color and shape of your candle, these factors aren’t that important.
meaning
The lower shadow of the two candles represents the support area.
The shorts are unwilling to sell below the lowest price, so the bulls come back and overwhelm the shorts, driving the price back up.
As two or more candles form shadows at the same level, it confirms the strength of the support and indicates that the downtrend may have been paused or worse, has reversed into an uptrend.
Like the tweezer top, the tweezer bottom is considered a reversal pattern.
In order to better analyze the bottom of a specific tweezer, please observe the following:
- If the tweezer bottom occurs at the market low, it is more reliable.
- A reversal is more reliable if the real body of the first candle is larger and the real body of the second candle is shorter.
- It is more reliable if the tweezer bottom is followed by another reversal pattern, such as a bullish engulfing or piercing line pattern with the same low.
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