Tweezers Bottom
and Hammer |
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 Bottom and Hammer pattern can be recognized by a hammer session which successfully tests the prior long bearish candlestick's lows.
In a downtrend market, a tweezers bottom is formed when the lows are matched.
The tweezers could be recognized by real bodies, shadows and/or doji.
PATTERN RECOGNITION
1. Tweezers Bottom and Hammer pattern can be identified by a downtrend.
2. Refering to above diagram, firstly we will see a bearish candlestick at the bottom of the downtrend.
3. Next we will see a bullish candlestick with long lower shadow (hammer) which its low match the previous bearish candlestick.
EXPLAINATION
The Tweezers Bottom and Hammer pattern can also be identified as harami.
The hammer with successful test of support indicate that the sellers are losing control of the market.
It can be view as important support when hammer is formed at the bottom of a downtrend.
This 2nd grade reversal pattern is a reliable group of reversal pattern but require confirmation.
POINT TO NOTE
A confirmation is recommended on the third candlestick to confirm the trend has reversed. The confirmation is needed in a form of a bullish candlestick with a large gap upward or a higher 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 |
