Tweezer

DEFINITION of 'Tweezer'

A pattern found in technical analysis of options trading. Tweezer patterns occur when two or more candlesticks touch the same bottom for a tweezer bottom pattern or top for a tweezer top pattern. This type of pattern can be made with candlestick charts of various types.

BREAKING DOWN 'Tweezer'

Tweezer bottoms are considered to be short-term bullish reversal patterns. Tops are bearish, and either end means that buyers or sellers were not able to push the top or bottom any further. Both types of patterns require close observation and research in order to be interpreted and used correctly.

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RELATED FAQS
  1. How do I build a profitable strategy when spotting a Tweezer pattern?

    The key to building a profitable trade strategy based on a tweezer pattern is establishing sufficient confirmation of the ... Read Full Answer >>
  2. How are Tweezer patterns interpreted by analysts and traders?

    The tweezer is a very common candlestick pattern. Theoretically, this pattern is an indication that the current trend has ... Read Full Answer >>
  3. How effective is creating trade entries after spotting a Tweezer pattern?

    Despite being very common, the tweezer candlestick pattern is not a reliable basis for trade entry. Though it is typically ... Read Full Answer >>
  4. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  5. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
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    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
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