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Importance of Twizzer Bottom Candle |
Hello traders,
welcome to my blog. Today I will discuss in detail about the Bullish Tweezer Bottom
candlestick pattern. This is a highly reliable Trend reversal bullish
candlesticks pattern. It means now the bearishness in the market is over and
the uptrend is about to begin.
Technical Analysis of Tweezer Bottom candlestick
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Tweezer Bottom Candle Formation |
* The Tweezer Bottom candlesticks pattern consists of two candles.
The first candle is Bearish or Marubozu . It is of red colour.
* The second candle is
bullish or Marubozu candlestick .
It is of green colour.
* Low prices of both candles must be equal.
* The high of the first or second candle is high of this pattern. And low of first or second candle is called low of this pattern.
Where is Tweezer Bottom Candle formed ?
* It is always formed after a long downtrend in the chart. It is formed at the Bottom of
the chart. After the formation of this pattern, the possibility of bearishness
in the market ends. Buying after getting the confirmation will definitely be
beneficial.
* It forms in every
type of market such as Indian stock
market, commodity market, foreign market etc.
* It appears in intraday charts, daily charts, weekly charts
and monthly charts. In these charts it works very well.
Where to use it?
* If you are trading in intraday then watch it in 5 minute ,15
minute and hourly time frame. But it gives good result in hourly time period.
* If you do positional trading then see it in daily chart and
monthly chart.
How to use it?
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how to use twizzer bottom |
* Suppose this pattern is formed in the chart. If the new
candle is opened gap-up from second candle of this pattern then you have to buy
in the market. or
* Buy only if the new candle closes above the high of this
pattern. This is very necessary.
* Volume of second candle must be higher than that of first
candle. It indicate that signal is more powerful. Some times it does not depend
on volume.
* The stop-loss is to be placed below the low price of this
pattern.
Let us understand this in the chart.
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Intraday Chart view |
* The Bullish Tweezer Bottom pattern in this chart is formed
after a long downtrend .
* Buy when the new candle closes above the high of this
pattern.
* The new candle in
this chart has closed above this pattern. This is the right time to trade.
* Put a stop-loss at the bottom of this pattern.
* Until a trend changing signal is received.
important Point
* In Tweezer Bottom pattern low
ends of first and second candle lie on same level .
* First Candle is bearish or marubozu . second candle is bullish
or marubozu.
* After the formation of this pattern, one should not buy
until the market price crosses its high.
* Volume of second candle must be higher than that of first
candle.
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