The Tweezer Top is a minor bearish trend reversal candlestick pattern which is used to signal an end to current uptrend and indicates the beginning of an downtrend.
Signalling that price is in an area of resistance, the Tweezer Top is a two-candle chart pattern in which both candlesticks have identical higher highs. For accuracy, the two candlesticks should be of alternating colours and of differing height.
Ideally, the first candle in the Tweezer Top formation should be a large bodied bullish candle to confirm the current trend while the second candle should be a short bodied bearish candle indicating trend weakness and forecast a potential trend reversal.
Theoretically a bearish reversal pattern but according to Bulkowski – acting as a bullish continuation pattern in almost 56-percent of searches, the Tweezer Top pattern is considered more reliable when appearing at market highs, near resistance lines or at higher trend lines.