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Chapter 9, Part V. Double Deuce – dual candlestick patterns. Page 7

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 15, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Tweezer Tops/Bottoms

    Although we’ve talked about the Tweezers already – they were a single-candle pattern and treated as market “indecision”. But now we will take a look at reversal pattern that consists of two (or more) Tweezers of different colors and shadows. In fact, the major condition of tweezers is to have the same highs or lows by candles that are forming the Tweezers. But it does not matter – by what the highs and lows have been formed – body or shadow. For example, if we have bottom Harami pattern and both of candles have the same low, while the first candle has no lower shadow and second candle has a long lower shadow – this still treated as a Tweezer bottom. Or, if market has formed Hammer and Inverted Hammer side by side and both candles have the same low – they are also Tweezer Bottoms. This pattern can include not only two, but three or more candles. The major condition is – the same highs or lows of these candles. Here is how it looks:

    [​IMG]

    As I’ve said this is a reversal pattern, and usually could be seen after solid uptrend (Tweezer Tops) or downtrend (Tweezer Bottoms), although it’s not so strong, as, say Engulfing models.

    Recognition and properties of Tweezers Tops/Bottoms:

    - It’s better if the first candle should be the same as previous tendency – white, if there was an uptrend and black, if downtrend. But this is not absolutely necessary.

    - Perfectly if the second candle is opposite to previous trend and, hence to previous one – but again not necessary;

    - Perfectly, if size, shadows and tops/bottoms should be very close to each other. If they are equal – much better. In fact these candles should be like twins with only difference is color.

    - Still any two candles can form Tweezer tops/bottoms. They just have to have the same high/low.

    Pure Tweezer Tops/Bottoms, like on the picture, relatively rare pattern, so you will not meet it very often. But candles with the same highs/lows are often could be met.

    Pipruit: Oh, finally, the last pattern…​

    Commander in Pips: On the next lesson we will talk about triple candle patterns…

    Pipruit: Oh, no – please just shoot me, Commander.​

    Commander in Pips: Take it easy, son. Yes, they are many, but they are amazing and not so complicated, besides, we are close to the finish of candlestick patterns – just bit of patience, ok?

    Pipruit: I’ll try.​



    P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon.



    Note: FPA ranks are earned in the battles against scam, not in the classroom.
     
    fran alvarez likes this.
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