What it looks like
Two candles after a rise. The first is an up candle, the second a down candle. Their highs are equal or within a tiny distance. The bodies can differ in size.
What it means
Buyers pushed to a level twice and were turned away both times, the second time with sellers closing the candle lower. Buyers had been in control and this is where they were stopped. It is a sign the rise is tiring, not proof that it has turned.
How to trade it
- 1
Confirm: wait for the next candle to close below the pattern's low.
- 2
Enter: sell on that close.
- 3
Stop: just above the shared high.
- 4
Target: 2 times the stop, or the nearest swing low.
- 5
Example: on US30 1 hour two candles top at the same high after a rise, with a 60 point pattern range. The next candle closes below the low; you sell with a 65 point stop and aim 130 points lower.
A close above the pattern's high, the level that held twice.
Where it works best
At a ceiling that already mattered, such as the previous day's high, a pivot or a round number.
WickSpeak finds the tweezer top automatically on any chart and names it on the candles that made it. Next to the name it writes what the pattern is, how to trade it and what proves it wrong, so you never have to guess the rule. In Playbook you can use the tweezer top, or any of the 146 patterns, as a condition alongside up to 12 conditions on any of 12 timeframes, then backtest it on past candles with your costs.
Common mistakes
- Accepting highs that are not really equal.
- Selling before the confirming close.
- Placing the stop exactly on the shared high.
Related patterns
Questions traders ask
Is a tweezer top bearish?
Yes, after a rise it hints the level is capping price. It needs a close below the pattern's low to trade.
Must the second candle be a down candle?
In our definition, yes: an up candle then a down candle with the same high.
How is a tweezer top different from a double top?
A tweezer top is two candles in a row. A double top is a chart pattern with two highs separated by a dip.
What cancels a tweezer top?
A close above the shared high.