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A two-candle bullish reversal pattern where consecutive candles share the same low, signaling support and potential trend change.
Tweezer Bottoms is a two-candle bullish reversal pattern that forms at the bottom of a downtrend. It consists of two consecutive candles that share the same or nearly the same low price, creating a "tweezers" appearance at the support level.
The pattern gets its name from the resemblance to a pair of tweezers - the matching lows create two parallel points at the bottom. The first candle is typically bearish (continuing the downtrend) and the second is bullish, showing the rejection of lower prices.
Tweezer Bottoms represent a failed breakdown at a precise price level. The first candle pushes to a new low, establishing a level where buyers appear. The second candle tests this exact level and fails to break lower, confirming it as support.
This double test and rejection is significant because it shows that the market tried twice to break through and couldn't. Bears had two opportunities to push lower and were denied both times. This creates a strong psychological floor.
When the second candle closes bullish, it signals that buyers have taken control. The matching lows act as a floor, and traders who sold near the bottom may begin to cover, accelerating the reversal.
Conservative: Enter long on a break above the second candle's high, confirmed by bullish follow-through.
Aggressive: Enter long at the close of the second (bullish) candle if at strong support.
Place stop below the matching lows (the tweezer level). This is the pattern's support - if price breaks below, the signal is invalidated.
T1: Previous swing high or nearest resistance level. T2: Measured move equal to the height of the bearish candle projected upward. T3: Use trailing stop for trend continuation.
Minimum 1:2 R:R required. Tight stop below lows often provides favorable risk/reward.
Tweezer Bottoms gain power from their location. The same pattern formation can be a strong reversal signal or meaningless noise depending on where it forms.
Matching lows indicate strong buying at that specific price. Great for defining stop loss levels on long positions.
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