Have you ever heard of tweezers in trading? If you see tweezers on the screen, it signals a trend reversal. Two divergent candles with the same size form the Tweezers: so during the downward trend “tweezers” will be in the bottom, and during the upward trend tweezers will be positioned in the top. Minimums and maximums in ” tweezers ” can be determined by closing candles and their shadows. Besides, the candles in tweezers can either follow one after the other or formed by several candles.
The advantage of the “tweezers ” is that it provides a clear and strong signal. When you see tweezers you get a strong signal.
Steve Nison wrote about the Tweezers bottoming and topping in his book “Japanese Candlestick Charting Techniques.”
Tweezers can take on varying appearances, but all have a couple of traits in common: sometimes appearing at market-turning points, these candlestick patterns can be used for analysis purposes – to simply indicate the possibility of a reversal.
Algorithm of actions during signal formation:
- Wait for the appearance of candles with the same extremes on the price chart, prepare for the changes of trend;
- After you see the “ tweezers”, buy an option in a new price direction.
CALL after the formation Tweezers
Tweezers with bearing absorption
Tweezers give a strong signal so you may prefer not to wait for the next candle, especially when the model is formed near edges.
If you hesitate, wait for a new candle and check your trend. Better check before you trade if you do not have enough experience.
