Bearish Tweezers Top
In an established uptrend day-one is a blue candle with a shaven bottom.
The second day is a red hammer or Doji with a long lower shadow.
The essential element of this pattern a series of candles that all share the same high. This could be the two days, or a number of days that are non-consecutive.
After a protracted bullish move this may provide a weak reversal signal, but most traders will look for additional confirmation of a reversal.
More useful is how this pattern creates an important resistance level. In any market, trending or ranging, this pattern establishes a level of resistance. Resistance Levels are simply price ranges that markets have trouble breaking above. Thus the high price these candles all share creates a clear benchmark for the market to break.
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