Free Trading Courses

Tweezer Top Patterns

Tweezer Top Patterns

Tweezer top patterns are a two candlestick reversal pattern with co-equal tops. This pattern can form at turning points in the market near support levels signaling a bearish reversal. Trend traders can find a tweezer top pattern to be really helpful because of what it means. Knowing when a trend is going to end and one begins is pretty helpful. Look for price to break below second candle to confirm bearish reversal. 

Table of Contents

What Are Tweezer Top Patterns?

Tweezer Top PatternsA tweezer top pattern consists of two candlesticks that form two peaks or resistance levels that are equal height. Typically when the second candle forms, it can’t break above the first candle and causes a tweezer top failure.

Tweezer top patterns are a two candlestick pattern. A tweezer top occurs after price has been moving up. Two candlesticks form highs that are almost if not the exact same.

So while perfect tweezer tops would have equal highs, it’s ok if one high is a tiny bit higher than the other.

In order for the two candles to be considered a tweezer top pattern, the first candlestick should to have a long real body. It doesn’t matter if they’re bearish candlesticks or marubuzo candlesticks.

The second candlestick can be any size. So the two candles can look a lot different from each other. You could see hammer candlesticks next to the first candlestick.

As long as the highs of those two days are same, it doesn’t matter what the candlesticks look like. The first candle should move in the direction of the trend. The second candle can pause or completely reverse the trend. This could be why doji candlesticks tend to form the second part of the pattern. 

How to Trade Tweezer Top Patterns

  • Watch for 1st top candlestick to form
  • Next, watch for 2nd candlestick for form a co-equal top
  • Then, watch for 3rd candlestick to fall below 2nd
  • Traders take a short once price breaks below the 2nd candlestick
  • Place stop at top of the 2nd candle
  • Some traders take a long position once price breaks above 2nd candle
  • Then place stop below the 2nd candle

When tweezer top patterns form, they tend to be in a bullish trend. Bullish stocks can be trading above those moving averages. Hence the reversal. They need to go back to equilibrium. 

Final Thoughts

Tweezer top patterns happen quite frequently on charts. It depends on what conditions the tweezer tops form in as to whether or not they really don’t mean anything or they are trade worthy. 

They can be continuation candles if they form in a pullback of a strong trend. This would allow you to get an entry.

When they form at the top of a trend, you know a reversal is coming. 

Responses

Your email address will not be published. Required fields are marked *

Free online
trading courses

We want to teach YOU how to trade!
Get access to over 10 FREE
Trading Courses!($3,000+ Value)
 

FREE ONLINE TRADING COURSES

If you’ve looked for trading education elsewhere then you’ll notice that it can be very costly.

We are opposed to charging ridiculous amounts to access experience and quality information. 

That being said, our website is a great resource for traders or investors of all levels to learn about day trading stocks, futures, and options. Swing trading too! 

On our site, you will find thousands of dollars worth of free online trading courses, tutorials, and reviews.

We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere.

Our content is packed with the essential knowledge that’s needed to help you to become a successful trader.

It’s important to treat day trading stocks, options, futures, and swing trading like you would with getting a professional degree, a new trade, or starting any new career.

Invest the proper time into your Trading Education and don’t try to run before you learn to crawl. Trading stocks is not a get-rich-quick scheme. It’s not gambling either, though there are people who treat it this way. Don’t be that person! 

STOCK TRADING COURSES FOR BEGINNERS

The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms. We provide our members with courses of all different trading levels and topics.

If you’re a beginner, intermediate level, or looking for expert trading knowledge…we’ve got you covered. 

We have a basic stock trading course, swing trading course, 2 day trading courses, 2 options courses, 2 candlesticks courses, and broker courses to help you get started. Free.

Just choose the course level that you’re most interested in and get started on the right path now. Become a leader, not a follower. When you’re ready you can join our chat rooms and access our Next Level training library. No rush. We’re here to help.

Click Here to take our free courses.