Tweezer bottom pattern meaning:
The tweezers bottom Japanese candlestick pattern, means that there are two tweezers with identical lows no matter if they do it with the real body or with their shadows. Since this Japanese candlestick reversal pattern is not a standardized formation is an idea in itself, since there are countless varieties and possible combinations.
The idea is given by the existence of a previous downtrend that makes a change when it reaches a certain point like a strong support, afterwards two candles appear with identical lows, both colliding with the zone and making it impossible to continue the downtrend and making a reversal of the previous trend.
The impossibility of the continuity of the trend when you spot them in Japanese candlestick graph, forming what is called in the Western Analysis a double bottom formation in this case as the tweezer bottom pattern.
A confirmation is necessary, of course and that would be given by the next Japanese candlestick on the next following day or trading session. Representing, one of the most accurate Japanese candlesticks trading signals. There are bots, designed only to scan the market looking for this patterns to trade them as they appear to be very powerful in trading.
How to identify a tweezer bottom:
- Long downtrend
- 2 lows stopping at the same point, shadows or body it really doesn’t matter.