Tweezers Top
and
Shooting Star |
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 Shooting Star pattern can be recognized by a tweezers top joined with the second bearish shooting star candlestick.
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 Shooting Star 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 upper shadow (shooting star) which the high match the previous bullish candlestick.
EXPLAINATION
Although the second bearish candlestick is not a true shooting star, the second bearish candlestick is based on price action which creates it, the market open near its low, rally to the prior candlestick's high and close near its low.
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
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
