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. Option

    A financial derivative that represents a contract sold by one ...
  2. Options Contract

    A contract that allows the holder to buy or sell an underlying ...
  3. Option Chain

    A form of quoting options prices through a list of all of the ...
  4. Call Option

    An agreement that gives an investor the right (but not the obligation) ...
  5. Pattern

    In technical analysis, the distinctive formation created by the ...
  6. Candlestick

    A chart that displays the high, low, opening and closing prices ...
RELATED FAQS
  1. 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 >>
Related Articles
  1. Options & Futures

    Backspreads: Good News For Breakout Traders

    This bullish trading strategy offers unlimited potential profit with limited risk.
  2. Options & Futures

    Vertical Bull and Bear Credit Spreads

    This trading strategy is an excellent limited-risk strategy that can be used with equity as well as commodity and futures options.
  3. Options & Futures

    Do Option Sellers Have a Trading Edge?

    Take a look at a study that discovered that three out of every four options expired worthless.
  4. Options & Futures

    An Option Strategy for Trading Market Bottoms

    The reverse calendar spreads offers a low-risk trading setup that has profit potential in both directions.
  5. Options & Futures

    The ABCs Of Option Volatility

    The mystery of options pricing can often be explained by a look at implied volatility (IV).
  6. Chart Advisor

    These Oil Service Stocks Are Ready For A Move Higher

    In the oil services sector, active traders have been trying hard to establish a floor and the double bottom pattern that is appearing on the chart suggests that a short-term reversal could be ...
  7. Trading Strategies

    The Top Five Stocks For Novice Swing Traders

    New to Swing Trading? Here are the top five stocks recommended for swing trading.
  8. Options & Futures

    Advantages Of Trading Futures Over Stocks

    We look at the top eight advantages of trading futures over stocks.
  9. Chart Advisor

    These ETFs are Breaking Out of Chart Patterns Now

    Three buys and one sell; here are four ETFs breaking out of chart patterns right now.
  10. Trading Strategies

    Capitalize On Collars To Enhance Your Trades

    Trade collaring measures current technicals and makes swift adjustments to account for environmental changes.

You May Also Like

Hot Definitions
  1. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  3. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  5. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
  6. Currency Carry Trade

    A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase ...
Trading Center