Tweezer tops & Hammer Candlesticks

S

swtrader

I know there was a thread a while back 'trading hammers'

I've also noticed on charts 'tweezer tops' where the tops are identical or near identical after a run up (and the exact inverse on bottoms). I partuclar, I'm not talking about 2 candles that just happen to have the same top or bottom, I'm talking about those candles that look like chopsticks. I often see what looks like chopsticks on on inflection points,

Has anyone had much luck using these, placing a stop just beyond the tweezer level? - then running a trailing stop at the low/high of the preceeding day. Particularly on daily charts, where I think the high or a low of a candle is more signifigant

also, I ask about hammer bottoms/gravestone dogi tops, with appropriate stops as well - particularly when there is volume

I have been focussed on moving averages for a while, and it seems like they can be so 'fuzzy' in terms of what might be expected vs how they can actually play out, while meanwhile it seems like the actual market concensus gets played out in these particular candles
 
One clarification I should make is that by 'tweezer' I mean a top where first candle is green, and second is red, and a bottom where the first candle is red, and the second is green
 
Quote from swtrader:

...I'm not talking about 2 candles that just happen to have the same top or bottom, I'm talking about those candles that look like chopsticks. I often see what looks like chopsticks on on inflection points,

Has anyone had much luck using these, placing a stop just beyond the tweezer level? - then running a trailing stop at the low/high of the preceeding day. Particularly on daily charts, where I think the high or a low of a candle is more signifigant...
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Confusing thread...can you post a chart example ???

Chart will clear up your definition of chopstick pattern.

Beyond the tweezer level with a specific number needs to be defined.

Use a chart example via some index charts (dow jones, s&p, nasdaq, russell, dax et cetera)...easier to understand the price action which is needed prior to trying to analyze candlestick patterns.

NihabaAshi
 
NihabaAshi, here's an example - last candle is the one following the 'tweezers'

One other thing, there shouldn't be evidence of late day reversal in the second candle of the tweezer
 

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Quote from swtrader:

NihabaAshi, here's an example - last candle is the one following the 'tweezers'

One other thing, there shouldn't be evidence of late day reversal in the second candle of the tweezer
More...

Hi swtrader,

My QQQQ daily charts are different than yours (difference in data providers).

With that said, I can't tell for sure via your charts alone but what you call a tweezers aren't a tweezer top in reference to the two candlesticks prior to the last candlesticks on your chart.

Remember, tweezers are usually a multi-candlestick pattern.

Therefore the price action can be a late day reversal in the second candlestick assuming those two candlesticks on your chart are tweezers.

In fact, the key is the equal tops of tweezer tops or equal bottom of tweezer bottom...

Not the price action (doji, wide range body, small body et cetera) within the tweezer that would determine if its a tweezer or not.

I myself don't like to trade tweezers as tweezers...I prefer to concentrate on that other candlestick pattern within the tweezer.

Out of curousity, since tweezers are reversal patterns...why would you think there shouldn't be evidence of a late day reversal in the second candlestick line of a tweezer top.

Once again, I can't tell from your chart if that really is a tweezer top.

Can you draw a highlight arror or circle on your chart to show your tweezer top so that I'm following you correctly on this ???

NihabaAshi
 
NihabaAshi, thanks for responding

I've circled what I call 'tweezers'

'Out of curousity, since tweezers are reversal patterns...why would you think there shouldn't be evidence of a late day reversal in the second candlestick line of a tweezer top. '

I should have been more clear, what I meant by that would be a 'counter reversal', say where a red candle follows a green candle on a tweezer top, but the second candle has a tail
 

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Quote from swtrader:

another, showing the next 2 candles that follow the tweezers
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Ok...took me awhile to figure it out.

Your first chart ends with Jan 2004 (QQQ) and your second chart ends with Jan 2005 (QQQQ).

NihabaAshi
 
'Beyond the tweezer level with a specific number needs to be defined. '

what I mean, would be a stop just above the highs of the 2 candles that compose the tweezer top

(and inverse for tweezer bottoms)
 
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