The Tweezer Top formation is a bearish reversal pattern seen at the top of uptrends
Tweezer Top formation consists of two candlesticks:
- Bullish Candle
- Bearish Candle
A bearish Tweezer Top occurs during an uptrend when bulls take prices higher, often closing the day off near the highs (a bullish sign). However, on the next candle , how traders feel (i.e. their sentiment) reverses completely. The market opens and goes straight down, often eliminating the entire gains of candle 1.