Tweezer tops and bottoms show potential price reversals from "summary" of Japanese Candlestick Charting Techniques by Steve Nison
Tweezer tops and bottoms are formed when two or more consecutive candlesticks have highs or lows that are nearly equal. Tweezer tops occur when two or more candlesticks have similar highs, indicating resistance to higher prices. Conversely, tweezer bottoms are formed when two or more candlesticks have similar lows, showing support for lower prices.
These patterns can signal potential price reversals as they suggest that buyers and sellers are evenly matched and are struggling to maintain control. When a tweezer top forms after an uptrend, it could indicate that buyers are losing momentum and that a reversal to lower prices may be imminent. Similarly, a tweezer bottom appearing after a downtrend could suggest that sellers are losing steam and a reversal to higher p...
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