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.
Related Terms
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