Tweezer Bottom
A tweezer bottom is a technical analysis chart pattern that is used to predict a reversal in the current trend of a security. It is formed when two candlesticks with the same low price are formed in a row. The tweezer bottom is considered to be a bullish reversal pattern, as it signals that the current downtrend is coming to an end and that the security is likely to start moving up in price. The tweezer bottom is often used in conjunction with other technical indicators to confirm the reversal.
History of the Term
The tweezer bottom pattern was first described by Japanese candlestick charting pioneer, Steve Nison, in his book, Japanese Candlestick Charting Techniques. Nison noted that the tweezer bottom pattern was a reliable indicator of a reversal in the trend of a security. Since then, the tweezer bottom pattern has become a popular tool among technical analysts.
Table of Comparisons
| Pattern | Reversal |
|---|---|
| Tweezer Bottom | Bullish |
| Tweezer Top | Bearish |
Summary
The tweezer bottom is a technical analysis chart pattern that is used to predict a reversal in the current trend of a security. It is formed when two candlesticks with the same low price are formed in a row. The tweezer bottom is considered to be a bullish reversal pattern, as it signals that the current downtrend is coming to an end and that the security is likely to start moving up in price. For more information about the tweezer bottom pattern, investors can visit websites such as Investopedia, The Balance, and StockCharts.
See Also
- Tweezer Top
- Double Bottom
- Double Top
- Head and Shoulders
- Inverted Head and Shoulders
- Rising Wedge
- Falling Wedge
- Cup and Handle
- Flag and Pennant
- Triple Bottom
