Tweezer Top candlestick patterns are relatively easy to spot on most charts. The Tweezer Top is a 2-candle pattern largely accepted as a bearish reversal price pattern indicating the end of a bullish uptrend.
The way this candlestick pattern formation works is simple.
The two candles test the exact same highs in back to back candle sessions. While with a majority of candlestick patterns the structural importance lies in the candle’s body — the open and close — the Tweezer Top pattern relies on matching high’s to determine a valid signal.
The first candle should be a bullish or bearish candle.
The second candle should be another bullish or bearish candle that tests the highs of the first candle.
The second candle can be a Doji, spinning top or any other single candle, but it should have the exact the same high as the first candle.
Although it is considered a bearish reversal pattern, according to Bulkowski’s testing, the Tweezer Top is actually a bullish continuation pattern 56% of the time. With this said, anything below 60% can be considered random, and so whenever you spot a Tweezer Top, just know that price can easily travel up or down in either direction.
The opposite of the Tweezer Top candlestick chart pattern is the Tweezer Bottom pattern.