Tweezer Top and Tweezer Bottom Strategy: Candles, Entry, Stop and Target

What it is

A tweezer bottom is two consecutive candles — a down candle then an up candle — with almost the same low. A tweezer top is the mirror: an up candle then a down candle with matching highs. The market tested the same price twice and was rejected both times.

Why it can work

A matching extreme shows that orders were waiting at that price. When it happens at a known support or resistance after a move into it, it is a clean, low-risk spot to look for a reversal because the stop can sit just beyond the shared extreme.

The candles to expect

• Candle 1: a real candle (at least about 0.5 ATR) that drives into the level.
• Candle 2: the opposite colour with a low (bottom) or high (top) within about 0.12 ATR of candle 1.
• Location: at a swing level or zone, after a clear move into it.
• Entry candle: the next candle that breaks above both highs (bottom) or below both lows (top).

Step-by-step entry

1. Mark a swing support or resistance.
2. Wait for price to drive into it with a decent candle.
3. Look for the opposite-colour candle with the same low (or high).
4. Place a buy stop above the higher of the two highs (sell stop below the lower of the two lows).
5. Stop just beyond the shared extreme.
6. Target the next level; skip if under 2R.
7. Risk 1% or less.

Stop and target

Stop: a small buffer (about 0.15 ATR) beyond the shared low (or high). Target: the next swing level or three times the risk.

Common mistakes

• Calling any two candles a tweezer when the extremes differ by more than a few pips.
• Trading tweezers away from any level.
• Entering before the break of both candles.
• Ignoring the prior move: a tweezer without a move into the level means little.

Frequently asked questions

How close must the extremes be?

Within about 0.12 ATR on the Forextity scanner. On a 1-hour EUR/USD chart that is typically one to two pips.

Is a tweezer a continuation or reversal signal?

It is a reversal signal. In a strong trend it can fail, so the stop matters.

Scan for it automatically

Choose this strategy in the Forextity scanner. It looks for the pattern on real candles, marks it on the chart, shows an example entry, stop, target and reward-to-risk, scores how many conditions are met, and lists the same steps with the same candle diagrams. You can also test it on your pair in the Strategy Backtester. High reward-to-risk strategies win less than half the time, so size every trade small and see the Stress Test.

Risk notice: educational content, not financial advice. Leveraged trading carries a high risk of loss. Read our Risk Disclaimer.