Tweezer Bottom Candlestick Pattern

The Tweezer Bottom is a bullish reversal pattern that signals the potential end of a downtrend. It consists of two candles with almost identical lows, indicating strong support and a possible shift from bearish to bullish momentum

Structure of the Tweezer Bottom Pattern:

1. First Candle (Bearish):

• A red (bearish) candle, continuing the downtrend.

• Shows strong selling pressure.

2. Second Candle (Bullish with Same Low):

• A green (bullish) candle with a low equal (or very close) to the first candle’s low.

• This suggests that buyers are stepping in at the same support level, preventing further decline.

Key Characteristics:

✅ Both candles must have nearly identical lows (strong support zone).

✅ The second candle should be bullish, confirming a reversal.

✅ Stronger when appearing at a major support level or after an extended downtrend.

Psychology Behind the Pattern:

• The first bearish candle represents strong selling pressure.

• The second bullish candle rejects further downside, signaling that buyers are aggressively defending the support level.

• This traps short sellers and encourages more buying, potentially leading to an uptrend.

Trading Strategy:

📌 Entry: After the second (bullish) candle closes above the first candle’s high.

📌 Stop-loss: Below the tweezer low.

📌 Target: Next resistance level or based on a risk-reward ratio (e.g., 1:2).

Since Tweezer Bottoms indicate strong rejection of lower prices, they are more reliable when combined with high volume or technical support zones.