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Nikita (SEBI RA)

8th Oct ยท SEBI-Registered Analyst

Tweezers Top โ€“ Bearish Reversal Signal ๐Ÿ“‰

๐Ÿ“Š The Tweezers Top is the bearish counterpart and signals a potential reversal at the top of an uptrend. โœ… Formation (2 candles): 1๏ธโƒฃ First โ†’ Strong green candle in uptrend. 2๏ธโƒฃ Second โ†’ Red candle with a high equal to or very close to the previous candleโ€™s high. โœ… Meaning: Bulls tried to break higher twice but failed โ†’ resistance strong โ†’ sellers may take control. ๐Ÿ“Œ Example: Stock rallies โ‚น680 โ†’ โ‚น725, forms green candle high โ‚น728, next day red candle high โ‚น728 and closes โ‚น710 โ†’ Tweezers Top โ†’ bearish reversal likely. ๐Ÿง  Rule: Confirmation improves if red candle closes below prior candleโ€™s body.

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