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 are Tweezer patterns interpreted by analysts and traders?

    Understand the basics of the tweezer candlestick pattern and how analysts and traders interpret this common but unreliable ... Read Answer >>
  2. How effective is creating trade entries after spotting a Tweezer pattern?

    Understand the basics of the tweezer pattern, and learn why analysts and traders consider this unreliable reversal pattern ... Read Answer >>
  3. How do I build a profitable strategy when spotting a Tweezer pattern?

    Learn about the tweezer tops and tweezer bottoms and how to use these reversal signals with other technical indicators to ... Read Answer >>
  4. Are continuation patterns useful in forex trading and stock trading?

    Learn what a continuation pattern is in technical analysis and why it is useful in forex and stock market trading, and discover ... Read Answer >>
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