The Tweezer Top Candlestick Pattern
By now you should start to be understanding a lot about japanese candlesticks and how to use them in patterns to trade. I’m continuing to explain these patterns to you so you become a proficient forex trader. Soon, I’ll be showing you how these patterns are used in actual trading, but you need the theory first.
The second candlestick pattern that can be a very useful tool in spotting potential trend reversals is the tweezer top (and it’s partner, the tweezer bottom).
The tweezer top formation, as its name suggests, reveals the end of an uptrend and the beginning of a downtrend (a top).
A tweezer top formation has the following characteristics: two or more candles (dojis or spinning tops) of roughly equal height with long upper wicks (the wicks must make up at least 60% of the entire candle). The two (or more) candles can be bullish, bearish, or a combination of both.
Notice how the top of the wicks align to form a tweezer top uptrend reversal signal
If you identify a tweezer top and decide to trade it, sell at the opening of the candle that follows the second high candle in the tweezer top formation.
Forex Tip: Set your protective stop loss order at the last level of resistance (which will be the tweezer top’s high).
As with any indicator, trading on a convergence increases the probability that you will profit from your trade. If you spot a tweezer top, look for the trendline break or another indicator to provide more reason to believe that the market is reversing.
Can you guess what’s coming next? The tweezer bottom is the upside-down version of the tweezer top. The more examples you see of these candlestick patterns, the more useful they will be to you.
Related posts:
- The Tweezer Bottom Candlestick Pattern
- The Morning Star Candlestick Formation
- 8 Rules For Successfully Trading Candlestick Formations
- Japanese Candlestick Patterns – Doji & Spinning Tops
- The Evening Star Candlestick Formation
Tags: doji, spinning tops, trend reversal, trend reversals, tweezer bottom, tweezer top, uptrend, wicks Posted in
Rapid Forex on 
Larry on 
Dan Onzo on 
Rob on
March 2nd, 2010 at 12:00 pm
Ahh the candlesticks. No trader can do without them. We all know how to read the charts. We all now how to analyse them, but what most of us forget is too look at the signals the candlesticks give themselves.
Just a reminder for the following small candlestick patterns:
The Hammer
the Hanging Hammer
the inverse Hammer
The Morning Star
The Evening Star
the DOJO
Next to the chart paterns these small paterns can also give you much needed information.
[Reply]
Rapid Forex
Reply:
March 2nd, 2010 at 5:47 pm
Thanks for the great comment! Since I recently re-released this website, I figured I would start from the beginning.
I posted about the hammer here (along with gravestone and dragonfly doji). Yesterday I posted about the morning star and evening star.
I hadn’t thought about mentioning the inverse of hanging hammer, but I will do so in future posts. Thanks for the suggestions & for reading this blog!
Aloha ~ Brian Campbell (founder Rapid Forex)
[Reply]
October 17th, 2010 at 8:21 am
please can you help me out can you pls compile the formation of candlestick to and e book format for you fan to read properly thanks
[Reply]
Rapid Forex
Reply:
October 19th, 2010 at 8:07 am
This blog is free to read already. At this point the content is not offered in pdf, but you’re free to read the website.
[Reply]
January 13th, 2012 at 4:23 am
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