Tweezer

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Pattern

    In technical analysis, the distinctive formation created by the ...
  2. Call Option

    An agreement that gives an investor the right (but not the obligation) ...
  3. Candlestick

    A chart that displays the high, low, opening and closing prices ...
  4. Option

    A financial derivative that represents a contract sold by one ...
  5. Option Chain

    A form of quoting options prices through a list of all of the ...
  6. Options Contract

    A contract that allows the holder to buy or sell an underlying ...
Related Articles
  1. Backspreads: Good News For Breakout ...
    Options & Futures

    Backspreads: Good News For Breakout ...

  2. Vertical Bull and Bear Credit Spreads
    Options & Futures

    Vertical Bull and Bear Credit Spreads

  3. Do Option Sellers Have a Trading Edge?
    Options & Futures

    Do Option Sellers Have a Trading Edge?

  4. An Option Strategy for Trading Market ...
    Options & Futures

    An Option Strategy for Trading Market ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center