A Tweezer Top is a bearish reversal pattern seen at the top of uptrends and consists of two Japanese candlesticks with matching tops.
The matching tops are usually composed of shadows (or wicks) but can be the candle’s bodies as well.
It occurs during an uptrend when buyers push prices higher, often ending the session near the highs, but were not able to push the top any further. Tweezer Tops are considered to be short-term bearish reversal patterns that signal a market top.
To identify a Tweezer Top, look for the following criteria:
· There must be two or more consecutive candles of either color.
· A clear uptrend should be present.
· Both candles must reach the same high point.