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. Option Chain

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

    A contract that allows the holder to buy or sell an underlying ...
  4. Put Option

    An option contract giving the owner the right, but not the obligation, ...
  5. Bullish Engulfing Pattern

    A chart pattern that forms when a small black candlestick is ...
  6. Pattern

    In technical analysis, the distinctive formation created by the ...
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. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center