Tweezers Top and Hanging Man
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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 Hanging Man pattern can be recognized by two or more candlesticks with matching highs.
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 Hanging Man 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 with long lower shadow (hanging man) which the high match the previous bullish candlestick.
EXPLAINATION
When Tweezers Top and Hanging Man pattern is formed at the top of a uptrend, if the market opens under the hanging man's real body, it indicate that a top has been reached.
The market should not close above the tweezers top in order for this top reversal to prevail.
This pattern can also be recognized as harami which can be a top reversal during an uptrend.
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 |
