Tweezer tops and bottoms, also known as tweezers, are reversal double candlestick patterns that may signal a potential change in the price direction.
The Tweezer patterns include two candles — bearish and bullish — that touch the same bottom (for bottom pattern) or top (for a top pattern).
Tweezer Bottoms pattern appears following a decline. The first candle is bearish (red) and the second is bullish (green), both share the same low and a moderate bottom tail (shadow) length.
Tweezer Tops pattern occurs following a rise. The first candle is bullish and the second is bearish, both share the same high and a moderate top tail (shadow) length.
Tweezer patterns may indicate the shift in the trend direction. The Tweezer Tops pattern may be a signal of reversal downward. At the same time, the Tweezer Bottoms pattern may indicate reversal upward.
Tweezers are formed by two opposite candles, a bearish and a bullish, that occur at the end of a trend and have matching highs or lows. The perfect scenario of a Tweezer formation assumes that the size, tops/bottoms, and shadows of the two candles are very similar. The pattern will be even more powerful if they are twin-like.
But it doesn’t mean that all tweezers are equal. It is possible to find examples where the first candle is extremely strong and the next one is a doji (or another candle that doesn’t look as strong as the first one).
Tweezer patterns are valid only when they occur during uptrends and downtrends. Their appearance during choppy trading conditions is practically meaningless, and it signals the market indecision to move in either direction.
However, it's important to note that Tweezers don't indicate how strong the trend may be. Meaning the pattern doesn't show the information about how long the trend will last and what amount of a price rise or fall to expect.