Tweezers Top Candlestick: Summary
Tweezers top candlesticks are simple to find in a historical price series. Just look for two adjacent candles with the same high price in an uptrend. Candle theory says that the pair is supposed to be a bearish reversal because it illustrates overhead resistance, but my tests show that tweezers tops actually act as bullish continuations 56% of the time. That performance is, of course, near random. Thus, expect the breakout to be in any direction. With an overall performance ranking of 81 (where 1 is best), that suggests the price trend after the breakout is weak.
Tweezers Top Candlestick: Important Results
Theoretical performance: Bearish reversal Tested performance: Bullish continuation 56% of the time Frequency rank: 35 Overall performance rank: 81 Best percentage meeting price target: 65% (bull market, up breakout) Best average move in 10 days: -3.21% (bear market, down breakout) Best 10-day performance rank: 42 (bull market, down breakout) All ranks are out of 103 candlestick patterns with the top performer ranking 1. “Best” means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |  Tweezers Top |
Tweezers Top Candlestick: Discussion
If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.
Tweezers Top Candlestick: Identification Guidelines
| Characteristic | Discussion |
| Number of candle lines | Two. |
| Price trend leading to the pattern | Upward. |
| Configuration | Look for two adjacent candlesticks with the same (or nearly the same) high price in an uptrend. |
Tweezers Top Candlestick: Three Trading Tidbits
In this example, the first day is a tall white candlestick followed by a short black one. Both appear in an upward price trend and both have the same high price. The next day price closes higher, above the tweezers top, staging an upward breakout. Price continues rising. Notice how the tweezers top appears almost midway into the up trend. With chart patterns such as flags and pennants, they often mark the middle of an upward trend so you can better guess when the trend will pause or even reverse.
- Tweezers top candles that appear within a third of the yearly low perform best — page 840.
- Tweezers top candles with tall upper and lower shadows tend to do well — page 841.
- For best performance, trade in the direction of the prevailing price trend — page 842.
Tweezers Top Candlestick: Example
On the journey of life, I choose the psycho path.
