Tweezer Candlestick Patterns
Sixty Sixth session of Forex Training
Welcome back to Forex professional training in financial markets.
In this session Tweezer Candlestick Patterns will be studied.
The ideal condition for this pattern occurs when two Bearish Shooting Stars form.
Trader can place a Sell order with entry price lower than the second Shooting Star candle with SL over High price.
TP price equals length of the second candle in pips, lower than the entry price.
When two Hammer patterns form on a downward trend, this pattern is called Tweezer Bottom.
The ideal condition for this pattern occurs when two Bullish Hammers form.
Trader can place a Buy order with entry price Higher than the second Hammer candle with SL below Low price.
TP price equals length of the second candle in pips, higher than the entry price.
On MT4 platform, there was a downtrend in which a Tweezer candle has formed with TP price 90 pips higher than entry price.
SL price could be lower than Tweezer pattern. This example shows a complete form of a Tweezer Bottom pattern.
After a downward trend, a Tweezer Bottom has formed that includes two same candlesticks, Bearish and Bullish format.
Trader could place a Buy order with TP price 17 pips over the entry price. Market trend has moved 30 pips higher than the entry price.
Just after that trend, another Tweezer Top has formed. A Bullish Shooting star formed just after a Bearish Shooting Star.
Trader could place a Sell order with TP price 22 pips lower than the entry price.
Trend proceeded towards the bottom more than TP price. So a Tweezer Bottom on a downward trend had formed before Tweezer Top.
This pattern generates sound and reliable signals, however, it forms rarely on a market trend.
That concludes this session, until next time and another session take care.