In this video I'm going to take a look at tweezer top and tweezer bottom patterns.
These are two candlesticks and they're one of the most easily identifiable sets a candle sticks in.
Personally for me has worked out quite well.
So a tweezer top is pretty straightforward.
It's two candlesticks
and they both have longer wicks on the top.
Right around the same size and a tweezer bottom is the same thing.
Just as I'm sure your guest is at the bottom of a downtrend.
These are reversal patterns so the tweezer bottom might look something like this and these might be
white or green.
These might be red or black.
They don't necessarily have to be but most of the time you're going to see at least 50 50 mean one of
red or one of them green so think about what's happening.
So I'll go ahead draw this out.
This a line chart looks like that and that means that we clearly have resistance at that level this
on a line chart looks like that that's a representation of an M and A W pattern with two candlesticks.
That's exactly what's going on at these are days or hours or whatever if you draw the line chart of
these two candlesticks.
That's what you're getting people who are buying at this point are struggling to go higher and they're
becoming concerned people that are selling or struggling to go lower and the buyers are pushing them
back up.
So with that in mind let's take a look at a couple tweezer Tom and tweezer bottom setups here and the
repo market on the 15 minute chart.
Couple long weeks in a row that's tweezer top you prefer to see longer wigs if at all possible.
But that is a tweezer top.
How do you it.
In this case you sell it on a break below the 2 candle pattern.
You put the stop above the tweezer tops and then you let it go.
The tweezers the two candlestick Wicks are your signal themselves so as I go through this chart I will
find several other examples I'm sure they're pretty easy to spot.
Here's another breakdown below the two candlesticks.
It's a shorting pattern tweezer bottom on a pullback you can see that the market could not break down
and we shot much higher again.
Remember that the
tweezers you want to be somewhat similar in height.
So for example these two are pretty close to the same height.
These two aren't.
And they've got a candlestick between them so you don't wanna be bothered with that.
I wouldn't even call these tweezers although they work for a selling signal.
I wouldn't use that as an example though because it's not showing mass exhaustion you know the longer
the tweezers the better quite frankly because it shows more and more people are losing money trying
to go that way.
And remember people will do more to not lose money than they will to gain it.
That's a proven high apotheosis and theory and psychological research and it served quite well and trading
it shows up all the time as you look at the candlesticks you can see that there are little ones everywhere
but again I would implore you to look at ones that are a little bit longer at a at a run in the opposite
direction.
I'll go ahead and switch to the one hour chart and you can see there's tweezers there tweezers there
there's tweezers there short term bounce there are a couple other right there is a bullish one and you
can see that it just repeats itself on and on it's a sign that they can't break down now.
The question is what's really going on and what's really going on is there is an area in the case of
a bottom of support and there's an area of resistance and I want you to look at these candlesticks and
be able to extrapolate in your mind what they look like on a line chart because that's the easiest way
to truly identify them.
The nice thing about candlesticks though is that they have little tricks like this where you can say
OK well they can't break down below there and you don't have to think oh that's a W pattern.
In this case it's an hourly chart to like on the five minute chart.
It might be like that all but you need to know is it it can't break it down below there and a lot of
times trading is simply about going where the market wants to go.
Or better yet not putting money in the direction of where it can't go.
So think about that.