Wednesday, July 14, 2021

Tweezer Bottom and Inverted Hammer Candlestick Patterns

 Tweezer Bottom

The Tweezer Bottom candlestick pattern is a bullish reversal candlestick pattern that is formed at the end of the downtrend.

It consists of two candlesticks, the first one being bearish and the second one being bullish candlestick.

Both the candlesticks make almost or the same low.When the Tweezer Bottom candlestick pattern is formed the prior trend is a downtrend.

A bearish tweezer candlestick is formed which looks like the continuation of the ongoing downtrend. On the next day, the second day’s bullish candle’s low indicates a support level.

The bottom-most candles with almost the same low indicate the strength of the support and also signal that the downtrend may get reversed to form an uptrend. Due to this the bulls step into action and move the price upwards.

This bullish reversal is confirmed the next day when the bullish candle is formed.





Inverted Hammer

 Inverted Hammer is formed at the end of the downtrend and gives bullish reversal signal.

In this candlestick the real body is located at the end and there is long upper shadow. It is the inverse of the Hammer Candlestick pattern.

This pattern is formed when the opening and closing prices are near to each other and the upper shadow should be more than the twice of the real body.




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