A Tweezer Bottom is a bullish reversal pattern seen at the bottom of downtrends and consists of two Japanese candlesticks with matching bottoms.The matching bottoms are usually composed of shadows (or wicks) but can be the candle’s bodies as well.
A Tweezer Bottom occurs during a downtrend when sellers push prices lower, often ending the session near the lows, but were not able to push the bottom any further. They are considered to be short-term bullish reversal patterns that signal a market bottom.
To identify a Tweezer Bottom, look for the following criteria:
· There must be two or more consecutive candles of either color.
· A clear downtrend should be present.
· Both candles must reach the same low point.