Tweezer tops and bottoms

What it is

A tweezer bottom is two neighbouring candles with the same (or almost the same) low at the end of a fall: the first bearish, the second bullish. The market tried the same price twice and was rejected both times. A tweezer top is the mirror, with matching highs at the end of a rise.

How to spot it

• Two candles side by side with matching lows (or highs).
• The second candle closes in the new direction.

How to use it

• Use it at a support or resistance level as a sign of rejection; enter on the next candle with the stop beyond the matching extreme.

Common mistakes

• Trading tweezers in the middle of a range, where they mean little.
• Ignoring that matching lows are also obvious liquidity, which can be swept.

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