Bullish Tweezers Bottom Pattern
Tweezers bottom, or kenuki bottom, is a bullish market reversal pattern usually indicating an intermediate-term reversal of an existing bearish trend. It is a weakly reliable candlestick formation consisting of two candlesticks with identical lows. Bullish tweezers bottom can be considered as short-term double bottom formation and is a good indicator of short-term support levels.
The requirements of a bullish tweezers bottom candlestick pattern include:
The colors of the candlesticks are not important in this formation; but many traders consider the pattern more reliable when the first candlestick is a long bearish one and the second a short bullish one. The real-body of candlesticks is also not important; often the second candlestick can be an (inverted) hammer candlestick or a doji candlestick. The candlesticks needn’t be consecutive too.
The bullish tweezers bottom pattern is formed when a short-term bottom is formed in an existing downtrend. The new support level formed indicated by two identical bottoms can result in a short-term trend reversal. Tweezers bottom is a low reliable pattern and needs confirmation of short term trend reversal. The pattern becomes more reliable when one additional candlestick is formed with the same low.
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The requirements of a bullish tweezers bottom candlestick pattern include:
- The market/security should be characterized by a downtrend
- Two candlesticks are formed with identical lows
The colors of the candlesticks are not important in this formation; but many traders consider the pattern more reliable when the first candlestick is a long bearish one and the second a short bullish one. The real-body of candlesticks is also not important; often the second candlestick can be an (inverted) hammer candlestick or a doji candlestick. The candlesticks needn’t be consecutive too.
The bullish tweezers bottom pattern is formed when a short-term bottom is formed in an existing downtrend. The new support level formed indicated by two identical bottoms can result in a short-term trend reversal. Tweezers bottom is a low reliable pattern and needs confirmation of short term trend reversal. The pattern becomes more reliable when one additional candlestick is formed with the same low.
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Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage
posted by NobleTrading at
9:34 AM
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