Mastering Candlesticks: Tweezer Top

What is it?

By definition, a Tweezer Top is a two line candle formation which occurs at a resistance after a bullish swing. The first candle is white, the second candle is black, and the opening price of the second candle matches the closing price of the first candle. Based on that definition, any of the following candle formations qualify as a Tweezer Top.

Unfortunately, many of those formations above fail to play out well. However, there is a Tweezer Top formation, which we believe consistently provides a good reversal signal. We like to see larger white candle of average size followed by a similar size black candle, with the opening of the second day matching the close of the first day.

​Where is it?

When you find this formation at a resistance, it is a very good reason to expect an imminent bearish swing.

​What should I do when I see this pattern?

  • Tighten your stops
  • Be prepared for a swift and fast reversal
  • Be prepared for confirmation that the bear trend is actually setting up.

This two-candle pattern may be one of the most misunderstood candle patterns because the definition of the pattern is so broad. However, despite the broad definitions and many possible variations, when you find the right variation of Tweezer Tops, you will find them to be very reliable and predictive reversal patterns.

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