What is the Tweezer Top/Bottom Pattern?
Quick Answer: A tweezer top/bottom is a two-candle reversal signal where back-to-back highs or lows match closely, highlighting rejection of a price level and potential trend change.
Understanding the Tweezer Top/Bottom Pattern
A tweezer top/bottom forms when two consecutive candles share nearly identical highs (top) or lows (bottom), signalling a potential reversal. The second candle typically rejects the same level the first one tested, indicating failure to continue in the prior direction.
How Traders Use Tweezers
Tweezer tops appear after rallies and suggest selling pressure is matching prior buying interest. Tweezer bottoms arise after declines and highlight demand re-entering the market. Combine tweezers with nearby support or resistance zones and momentum divergence for stronger signals.
Entry Planning
Wait for confirmation from a follow-through candle or lower-time-frame break of structure before entering. Place stops beyond the shared wick to allow for minor retests.
Limitations
In choppy markets, tweezers occur frequently without meaningful reversals. Avoid over-trading by filtering with trend bias, volume, or sentiment indicators.
Beware of News Volatility
High-impact releases can invalidate tweezer setups instantly. Stand aside around major data if spreads or slippage widen.
Deep Dive
Most edges come from applying clear rules consistently. Expand your analysis beyond a single signal: add context from higher timeframes, recent volatility, session behavior, and catalysts. Define invalidation so a trade becomes obviously wrong fast, keeping losses small while letting winners compound.
Trader Checklist
- Higher‑timeframe bias aligns with the setup.
- Clear level or zone for entry with confluence.
- Pre‑defined stop beyond structure; 2–3R target.
- Session/liquidity supports follow‑through.
- No imminent high‑impact news unless planned.
Strategy Ideas
- Combine structure with momentum confirmation (break/close/acceptance).
- Use partials: scale out at first target; trail remainder.
- Journal results by session and pair to refine timing.
Risks and Limitations
- Thin liquidity widens spreads and distorts signals.
- False breaks around obvious levels—wait for acceptance.
- Overfitting indicators; keep the process simple and robust.
Example
Map bias on the daily chart, mark a zone, and wait on 1H for a close back above with rising participation. Enter on the retest; stop beyond the invalidation wick; target prior swing with room for extension. Record the outcome and context to iterate.
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