Tweezers Bottom
and Piercing Pattern |
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 Piercing pattern can be recognized by a bullish piercing candlestick with a tweezers bottom formed when its low matches the previous candlestick's low.
A true piercing pattern would open under prior candlestick's low but Tweezers Bottom and Piercing pattern opened under the prior candlestick's close.
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 Piercing 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 which pierce above the prior candlestick's body which its low matches.
EXPLAINATION
The Tweezers Bottom and Piercing pattern shows that the bear is losing control and bull is now in control of the market.
This 2nd grade reversal pattern is a reliable group of reversal pattern but require confirmation.
POINT TO NOTE
For Piercing Pattern, the stronger the penetration into the bearish candlestick real body, the stronger the change in sentiment which is followed by a bottom reversal.
The ideal scenario of Piercing Pattern is the second bullish candlestick that pushes more than halfway through the first bearish candlestick's real body.
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 |
