Question: What is the Candlestick pattern called "Tweezers"?
The market continues to trade in the direction of the established uptrend, registering higher highs.
The next session is bearish, pushing prices lower.
The matching highs indicate that a possible top may be in place and a reversal may be imminent.
During the course of the uptrend, traders enter the market with long positions, trading in the direction of the rally.
While the sentiment is clearly positive, the next session belongs to the bears as they find prices attractive.
While the battle between bulls and bears goes on, traders enter with long positions but are not willing to trade at a price higher than the previous session (thus matching highs), and take short positions to register a bearish candle and shift the sentiment to negative.
Supply/Demand | Supply is greater than demand |
---|---|
Sentiment | Negative |
Direction | Bearish reversal |
Trigger | Consider selling if the next candlestick falls below the low of the black candle |