Tweezers Top and Dark Cloud Cover
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Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bearish
Prior Trend of Candlesticks: Bullish
Reliability of Candlesticks : 2nd Grade
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
Tweezers Top and Dark Cloud Cover pattern can be recognized by second bearish candlestick which opens above the prior candlestick's close (instead of above the prior candlestick's high).
The second bearish candlestick high touches the prior candlestick's high and then falls.
In a uptrend market, a tweezers top is formed when the highs are matched.
The tweezers could be recognized by real bodies, shadows and/or doji.
PATTERN RECOGNITION
1. Tweezers Top and Dark Cloud Cover pattern can be identified by a uptrend.
2. Refering to above diagram, firstly we will see a bullish candlestick at the top of the uptrend.
3. Next we will see a bearish candlestick engulf the prior bullish candlesticks which the high matches.
EXPLAINATION
When Tweezers Top and Dark Cloud Cover pattern is formed at the top of a uptrend. The second candlestick engulf the first bullish candlestick which high matches.
This show that the bull has no strength to push the price above its high and fall.
The market should not close above the tweezers top in order for this top reversal to prevail.
This 2nd grade reversal pattern is a reliable group of reversal pattern but require confirmation.
POINT TO NOTE
A tweezers occurs after an extended period of uptrend movement or contain other bearish (top reversal) candlestick signal.
The confirmation is recommended on the third candlestick to confirm the trend has reversed. The confirmation is needed in a form of a bearish candlestick with a large gap downward or a lower close on the third candlestick.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
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More likely to rally, Less likely to go sideways
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More likely to go sideway, Less likely to fall
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More likely to fall, Less likely to go sideways |
