InvestorsHub Logo
Followers 177
Posts 721260
Boards Moderated 0
Alias Born 10/18/2012

Re: None

Wednesday, 02/10/2016 1:45:55 AM

Wednesday, February 10, 2016 1:45:55 AM

Post# of 2804248

Tweezer Bottoms


The Tweezer Bottom formation is a bullish reversal pattern seen at the bottom of downtrends.
Tweezer Bottom formation consists of two candlesticks:

Bearish Candle (Day 1)
Bullish Candle (Day 2)
Sometimes Tweezer Bottoms have three candlesticks.
A bullish Tweezer Bottom occurs during a downtrend when bears continue to take prices lower, usually closing the day near the lows (a bearish sign). Nevertheless, Day 2 is completely opposite because prices open and go nowhere but upwards. This bullish advance on Day 2 sometimes eliminates all losses from the previous day.



The bears pushed the price of Exxon-Mobil (XOM) downwards on Day 1; however, the market on Day 2 opened where prices closed on Day 1 and went straight up, reversing the losses of Day 2. A buy signal would generally be given on the day after the Tweezer Bottom, assuming the candlestick was bullish green.
The Tweezer Top and Bottom reversal pattern is extremely helpful because it visually indicates a transfer of power and sentiment from the bulls and the bears. Of course other technical indicators should be consulted before making a buy or sell signal based on the Tweezer patterns.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.