Tweezer Tops and Tweezer Bottoms Candle Pattern (real chart examples)

Tweezer Tops and Tweezer Bottoms Candle Pattern (real chart examples)
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Tweezer Tops and Tweezer Bottoms are candle patterns formed by two or more candles and signal a potential reversal in the market. In this article we will show you how to identify them in the right market position with real chart examples.

The Tweezer Candle Pattern is a two or more candle pattern which signals a potential reversal in the market. Tweezer Tops are bearish and should be identified as a signal when occurring in an up-trending market or at the top of a range. Tweezer Bottoms are bullish and should be identified as a signal when occurring in an down-trending market or at the bottom of a range.

Tweezers Tops Candle Pattern Criteria:

  • Tweezers are two or more candlestick lines with matching highs.
  • The tweezers could be composed of real bodies, shadows, and/or doji.
  • The first candle should preferably be green (bullish) followed by a red (bearish) candle(s).

Tweezers Bottoms Candle Pattern Criteria:

  • Tweezers are two or more candlestick lines with matching lows.
  • The tweezers could be composed of real bodies, shadows, and/or doji.
  • The first candle should preferably be red (bearish) followed by a green (bullish) candle(s).

Additional notes:

  • Tweezer tops and bottoms are not strong reversal signals. They take on extra importance when they occur after an extended move or contain other bearish or bullish candlestick signals.
  • For example as in this example below from Commodity.com of a Tweezer Tops pattern as seen on the 15 minute chart it also forms a classic Double Top formation.
Three Day Tweezer Double Top Example
Three Day Tweezer Double Top Example

Quick Reference Guide – Candlestick Basics. If you need a reminder of what candlesticks are have a look at our free PDF – Candlesticks Explained.

The criteria and examples above are just the technical definitions of this pattern. However patterns are only useful with context and with real chart examples.

No pattern will ever exactly match the criteria and in order to be a useful signal must occur in the correct place in a trend. Let’s start by looking at the classification table for this pattern.

Tweezer Tops Candle Pattern Classification Table

Number of Candles In Pattern 2 or more
Type: (Reversal/Continuation) Reversal
Bullish/Bearish/Indecision Bearish
Market Conditions: Range, Down-trend, Up-trend Up-trend, Range
Position: Top, Bottom, Range Top

Tweezer Bottoms Candle Pattern Classification Table

Number of Candles In Pattern 2 or more
Type: (Reversal/Continuation) Reversal
Bullish/Bearish/Indecision Bullish
Market Conditions: Range, Down-trend, Up-trend Down-trend, Range
Position: Top, Bottom, Range Bottom

What Price Action Does The Tweezer Pattern Represent?

All candlestick patterns are formed by price action. But the popular ones represent price action that may have significance in signalling the direction of the market.

The Tweezer Pattern occurs when price action hits an area of resistance or support. This would be the formation of matching highs for a Tweezer Tops pattern (resistance) or the formation of matching lows for a Tweezer Bottoms pattern (support).

This price action which stops at exactly the same level to form the tweezer can indicate that the price may be a significant level.This could signal a price beyond which the current trend may struggle to move and could be followed by a reversal of the prevailing trend.

As with all reversal patterns, these signals are better when seen after a sustained trend in one direction. The signal is best when formed in a trend but can also be valid when formed at the appropriate place in a ranging market.

Hint: It is always good practice to look for confirmation for any signal that you are looking to trade.

Tweezer Tops Pattern Example With Confirmation

In this example on the US500 market the price action had moved up and hit an area of resistance and retraced. A second test formed a double top and retraced again forming a range.

On the third attempt the previous resistance was broken but then hit a hard stop with the Tweezer Top pattern forming. The market then reversed again to the bottom of the range at which point it gapped down and took the price action below the level of the start of the original uptrend.

Tweezer Tops Candle Pattern Example on a Key Level
Tweezer Tops Candle Pattern Example on a Key Level

Tweezer Bottoms Pattern Example With Confirmation

In this US500 market example, the Tweezer Bottom pattern formed around a key support area. This confirmed the bottom of the prevailing range and the market moved back up to the top of the range again.

Tweezer Bottoms Candle Pattern Example on a Key Level
Tweezer Bottoms Candle Pattern Example on a Key Level

In What Market Conditions Does The Tweezer Tops and Tweezer Bottoms Pattern Become A Signal?

To recap – the Tweezer Tops pattern is a potential signal if seen at the top of a trend or the top of a range, especially if combined with confirmation.

The Tweezer Bottoms is a potential signal if seen at the bottom of a trend or the bottom of a range, especially if combined with confirmation. Let’s look at some more real chart examples.

Tweezer Tops Candle Pattern In A Ranging Market

A ranging market is one where the price action moves up and down between two sets of support and resistance. This is also known as a sideways or horizontal market. In essence the price action is struggling to break out of the range decisively either on the upside or downside.

Ranging Market Example
Ranging Market Example

In this US500 market example we can see a nice example of Tweezer Tops forming twice, both times signalling the top of the range and a move back down.

Bearish Tweezer Tops Candle Pattern Example in a Ranging Market
Bearish Tweezer Tops Candle Pattern Example in a Ranging Market

Tweezer Tops Candle Pattern In An Up-trending Market

An up-trending market is one where the price action generally moves down over time and is characterized by higher lows and higher highs.

Up-trending Market Example
Up-trending Market Example

In this US500 market example the market was uptrending with a recent significant push to new highs. The market paused and then retested the high but a Tweezer Top pattern formed and the market reversed.

Bearish Tweezer Tops Candle Pattern Example in an Up-trending Market
Bearish Tweezer Tops Candle Pattern Example in an Up-trending Market

Tweezer Bottoms Candle Pattern In A Ranging Market

As you can see in this example of the US500 the market was ranging and a Tweezer Bottoms pattern formed. It had in fact also formed at the start of the range giving a good support level. The market tested the level and then reversed and broke through the range.

Bullish Tweezer Bottoms Candle Pattern Example in a Ranging Market
Bullish Tweezer Bottoms Candle Pattern Example in a Ranging Market

Tweezer Bottoms Candle Pattern In A Down-Trending Market

A down-trending market is one where the price action generally moves down over time and is characterized by lower lows and lower highs.

Down-trending Market Example
Down-trending Market Example

As you can see in this US500 example below, the market was down-trending and then the Tweezer Bottom Candle Pattern occurred at the bottom of a sustained trend. The market reversed and went higher.

Bullish Tweezer Bottoms Candle Pattern Example in a Down-trending Market
Bullish Tweezer Bottoms Candle Pattern Example in a Down-trending Market

Candle Pattern MT4 Indicator Downloads

If you trade using MT4 then why not try out our free MT4 indicators? Most of our indicators, including the most common candle pattern indicators are Free and available for download here: MT4 Indicator Page.

Most of our candle indicators also have an alternate version which can show the signal in a separate indicator window of the chart if that is your preference.

For advanced users you can use our Pin Bar Pattern Manager (Paid) to specify your own parameters of candles you want to identify. You can find that here.

Important Information About Candlestick Patterns

Attribution:

All of the candlestick patterns that we explain on NothardTrading.com must be attributed to Steve Nison and his books on candle charting, the most famous of which was Japanese Candlestick Charting Techniques (Amazon). You can also find out more at his website here.

Interpretation Of Candle Patterns:

It is important to note that these patterns were originally identified on the daily timeframes of index charts, which is still where they are the most useful. However, this does not mean that they cannot be used for other markets or time frames.

No signal is perfect and should never be used as such. Any patterns that you identify only signals a potential move based on the fact that history repeats itself and forms regular patterns in similar situations.

But past performance is no guarantee of future results! So always treat these patterns with care and think of these guidelines when using them.

Best practice guide for trading of candle patterns:

  • No pattern is ever perfect. Be aware that patterns will form slightly differently each time and in different markets.
  • Use them as consistently as possible. Even though you will never find patterns exactly the same, you should always implement a consistent ruleset when identifying and using patterns.
  • It is never a guarantee, only an indication.
  • Make sure you are using it in the right context. For example if it is a continuation pattern then don’t use it to trade reversals!
  • Use multiple signals (confirmations) to have more confidence in your trading.

More About Candlestick Patterns

If you are interested in reading more about candlestick patterns you can find our articles on this topic here: https://www.nothardtrading.com/category/candle-patterns/ or choose a pattern below to read more. 

Justina Nothard

Justina Nothard

Hi, I’m Justina Nothard, a retail investor trading Stock Index Futures.

I understand how hard it can be for the ordinary trader to learn the basics and find useful tools and practical information.

This is why I decided to create Nothard Trading to help you take control of your trading.

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