As of 07/14/2020
  Indus: 26,643 +556.79 +2.1%  
  Trans: 9,465 +159.29 +1.7%  
  Utils: 800 +8.67 +1.1%  
  Nasdaq: 10,489 +97.74 +0.9%  
  S&P 500: 3,198 +42.30 +1.3%  
YTD
-6.6%  
-13.2%  
-9.0%  
 +16.9%  
-1.0%  
  Targets    Overview: 07/14/2020  
  Up arrow27,800 or 24,500 by 08/01/2020
  Up arrow10,050 or 8,600 by 08/01/2020
  Up arrow840 or 740 by 08/01/2020
  Up arrow10,800 or 10,000 by 08/01/2020
  Up arrow3,325 or 3,000 by 08/01/2020
CPI (updated daily): Arrows on 6/29/20
As of 07/14/2020
  Indus: 26,643 +556.79 +2.1%  
  Trans: 9,465 +159.29 +1.7%  
  Utils: 800 +8.67 +1.1%  
  Nasdaq: 10,489 +97.74 +0.9%  
  S&P 500: 3,198 +42.30 +1.3%  
YTD
-6.6%  
-13.2%  
-9.0%  
 +16.9%  
-1.0%  
  Targets    Overview: 07/14/2020  
  Up arrow27,800 or 24,500 by 08/01/2020
  Up arrow10,050 or 8,600 by 08/01/2020
  Up arrow840 or 740 by 08/01/2020
  Up arrow10,800 or 10,000 by 08/01/2020
  Up arrow3,325 or 3,000 by 08/01/2020
CPI (updated daily): Arrows on 6/29/20

Bulkowski on the Tweezers Bottom Candle Pattern

 

Tweezers Bottom: Summary

The tweezers bottom candlestick pattern is a name that makes sense to me. On this candlestick, price trends downward leading to the start of the tweezers. There, two candles of any color share the same low price, as if the low is where the tweezers join.

Unfortunately, as a tradeable candlestick, it is lousy. It is supposed to be a bullish reversal because price stops at the same low twice, signaling a support area, but testing reveals that price just continues lower. The overall performance is about mid list, too, so the trend after the breakout is not exciting.

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My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

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-- Tom Bulkowski

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Important Results
Discussion
Identification Guidelines
Three Trading Tidbits
Example
See Also

Tweezers Bottom: Important Results

Theoretical performance: Bullish reversal
Tested performance: Bearish continuation 52% of the time
Frequency rank: 39
Overall performance rank: 44
Best percentage meeting price target: 71% (bull market, up breakout)
Best average move in 10 days: 4.95% (bear market, up breakout)
Best 10-day performance rank: 29 (bear market, up breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal tweezers bottom candlestick
Tweezers Bottom

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Tweezers Bottom: Discussion

The tweezers bottom candle is supposed to act as a bullish reversal, but testing shows that it acts as a bearish continuation pattern 52% of the time. That is near random, so do not depend on predicting the breakout direction.

The best average move 10 days after the breakout is a rise of 4.95% in a bear market. That ranks 29th, which is respectable. I consider moves of 6% or more as good, so this candle pattern is more than a bit short.

Tweezers Bottom: Identification Guidelines

CharacteristicDiscussion
Number of candle linesTwo.
Price trend leading to the patternDownward.
ConfigurationLook for two candles sharing the same low price.

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Tweezers Bottom: Three Trading Tidbits

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. Tweezers bottom candles that appear within a third of the yearly low perform best -- page 832.
  2. Select tall candles for the best performance -- page 832.
  3. Tweezers bottoms within a third of the yearly high tend to act as reversals most often -- page 834.

The tweezers bottom candlestick on the daily scale

Tweezers Bottom: Example

The tweezers bottom appears circled in red on the daily chart. This one shows after a strong downward price trend. A black and white candle pair appears as the tweezers bottom, but they could be any color and any size just as long as they share the same low price.

Price breaks out upward from the tweezers bottom when price closes above the top of the candle pattern. That signals a reversal of the downward price trend. In this example, the reversal sticks and price trends upward off the hard right edge of the chart.

-- Thomas Bulkowski

 

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See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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