WEBVTT 00:03.640 --> 00:08.470 In this video I'm going to take a look at tweezer top and tweezer bottom patterns. 00:08.560 --> 00:17.150 These are two candlesticks and they're one of the most easily identifiable sets a candle sticks in. 00:17.200 --> 00:20.550 Personally for me has worked out quite well. 00:21.140 --> 00:25.560 So a tweezer top is pretty straightforward. 00:25.570 --> 00:26.720 It's two candlesticks 00:30.370 --> 00:34.330 and they both have longer wicks on the top. 00:37.310 --> 00:44.630 Right around the same size and a tweezer bottom is the same thing. 00:44.640 --> 00:51.240 Just as I'm sure your guest is at the bottom of a downtrend. 00:51.240 --> 01:03.260 These are reversal patterns so the tweezer bottom might look something like this and these might be 01:03.260 --> 01:04.200 white or green. 01:04.250 --> 01:05.290 These might be red or black. 01:05.290 --> 01:12.800 They don't necessarily have to be but most of the time you're going to see at least 50 50 mean one of 01:12.800 --> 01:18.380 red or one of them green so think about what's happening. 01:18.440 --> 01:19.930 So I'll go ahead draw this out. 01:19.970 --> 01:30.180 This a line chart looks like that and that means that we clearly have resistance at that level this 01:30.240 --> 01:37.990 on a line chart looks like that that's a representation of an M and A W pattern with two candlesticks. 01:38.040 --> 01:42.150 That's exactly what's going on at these are days or hours or whatever if you draw the line chart of 01:42.150 --> 01:43.230 these two candlesticks. 01:43.260 --> 01:48.570 That's what you're getting people who are buying at this point are struggling to go higher and they're 01:48.570 --> 01:54.000 becoming concerned people that are selling or struggling to go lower and the buyers are pushing them 01:54.000 --> 01:55.790 back up. 01:55.800 --> 02:02.010 So with that in mind let's take a look at a couple tweezer Tom and tweezer bottom setups here and the 02:02.010 --> 02:04.080 repo market on the 15 minute chart. 02:05.980 --> 02:16.180 Couple long weeks in a row that's tweezer top you prefer to see longer wigs if at all possible. 02:16.210 --> 02:18.580 But that is a tweezer top. 02:18.760 --> 02:19.820 How do you it. 02:19.960 --> 02:24.030 In this case you sell it on a break below the 2 candle pattern. 02:24.060 --> 02:29.300 You put the stop above the tweezer tops and then you let it go. 02:29.640 --> 02:39.910 The tweezers the two candlestick Wicks are your signal themselves so as I go through this chart I will 02:39.910 --> 02:44.340 find several other examples I'm sure they're pretty easy to spot. 02:44.350 --> 02:48.100 Here's another breakdown below the two candlesticks. 02:48.100 --> 02:56.400 It's a shorting pattern tweezer bottom on a pullback you can see that the market could not break down 02:56.460 --> 02:59.620 and we shot much higher again. 02:59.620 --> 03:01.600 Remember that the 03:04.390 --> 03:07.360 tweezers you want to be somewhat similar in height. 03:07.390 --> 03:12.630 So for example these two are pretty close to the same height. 03:12.710 --> 03:13.860 These two aren't. 03:13.880 --> 03:17.440 And they've got a candlestick between them so you don't wanna be bothered with that. 03:17.510 --> 03:22.080 I wouldn't even call these tweezers although they work for a selling signal. 03:23.190 --> 03:28.200 I wouldn't use that as an example though because it's not showing mass exhaustion you know the longer 03:28.200 --> 03:33.870 the tweezers the better quite frankly because it shows more and more people are losing money trying 03:33.870 --> 03:35.080 to go that way. 03:35.400 --> 03:39.930 And remember people will do more to not lose money than they will to gain it. 03:39.960 --> 03:49.080 That's a proven high apotheosis and theory and psychological research and it served quite well and trading 03:49.080 --> 03:56.240 it shows up all the time as you look at the candlesticks you can see that there are little ones everywhere 03:56.280 --> 04:02.820 but again I would implore you to look at ones that are a little bit longer at a at a run in the opposite 04:02.820 --> 04:04.650 direction. 04:04.790 --> 04:09.920 I'll go ahead and switch to the one hour chart and you can see there's tweezers there tweezers there 04:09.920 --> 04:20.200 there's tweezers there short term bounce there are a couple other right there is a bullish one and you 04:20.200 --> 04:26.360 can see that it just repeats itself on and on it's a sign that they can't break down now. 04:26.580 --> 04:32.960 The question is what's really going on and what's really going on is there is an area in the case of 04:32.960 --> 04:38.660 a bottom of support and there's an area of resistance and I want you to look at these candlesticks and 04:38.660 --> 04:43.460 be able to extrapolate in your mind what they look like on a line chart because that's the easiest way 04:43.460 --> 04:45.570 to truly identify them. 04:45.620 --> 04:49.880 The nice thing about candlesticks though is that they have little tricks like this where you can say 04:49.910 --> 04:54.160 OK well they can't break down below there and you don't have to think oh that's a W pattern. 04:54.200 --> 04:57.170 In this case it's an hourly chart to like on the five minute chart. 04:57.200 --> 05:04.260 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 05:04.260 --> 05:11.330 times trading is simply about going where the market wants to go. 05:11.330 --> 05:15.950 Or better yet not putting money in the direction of where it can't go. 05:16.670 --> 05:17.600 So think about that.