Tweezer Bottoms

Name Type Prerequisite Use Cases
Tweezer Bottoms Bullish Reversal OHLC Data Identifying support levels.

Definition

Tweezer Bottoms form when two or more candlesticks have the same (or very similar) low price. They indicate a firm support level that sellers cannot push below.

Pattern Structure

  • Context: Downtrend.
  • Candle 1: Usually a long red candle.
  • Candle 2: Retests the exact low of Candle 1.

Visualization

Tweezer Bottoms

Story

The bears drive the price down, establishing a distinct, hard floor. In the following session, they attempt to break this support level again, but are met with a literal brick wall from the buyers at the exact same price point. This repeated, precise rejection at a specific bottom creates a 'tweezer' shape, signaling to the market that an unbreakable line in the sand has been drawn by the bulls.

Trading Significance

  1. Support Confirmation: The market tested the same low twice and failed to break it.
  2. Double Bottom: Can be seen as a mini double bottom pattern.