Tweezer Bottom candlestick - Complete trading analysis

 

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 

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?

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.

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.

When to book profit?

* 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.