Tweezers Candle Model

The Tweezers Candle Model shows us that there is a strong support area that the price cannot break through. This is a reversal pattern, where two candles "touch the wick" at the same price level. In the first candle, the sellers push the price down but encounter strong buying pressure that causes the price to recover. In the second candle, the sellers again try to push the price down, but right at that price level, the buyers appear strongly and push the price up.

This pattern is based on a simple but extremely effective rule: If the price cannot break through the same price level twice, the probability of a trend reversal increases. In practice, this is quite similar to popular chart analysis patterns like Double Top and Double Bottom.

However, the difference with Tweezers is that these extrema occur almost exactly at the same price level, rather than within an estimated price range. The deviation (if any) is also very small, just a few points, even on larger time frames.

The occurrence of extrema at a specific price level (rather than an ambiguous range) indicates that the buying demand or selling pressure at that level is very strong, often leading to quick trend reversals.