Reading the market regime before prices move
A Tweezer Bottom forms when two consecutive candles share the same low (or nearly), at the bottom of a downtrend. The matching low marks a price where buyers held twice in a row, building a clear support floor.
A Tweezer Bottom is two consecutive candles (red, then green) touching nearly the same low: sellers tested the level twice in two sessions and were turned back from the exact same point. A defense that precise suggests real orders resting there. Traders often wait for the second candle to close above the midpoint of the first, or for a third candle as confirmation, with the stop just under the double low. The precision of the level is the advantage: a close, clearly defined stop and an excellent risk/reward ratio.
Being too loose about matching the two lows: a sizable gap between the lows turns a tweezer into two ordinary consecutive declines. Ignoring context is another: a tweezer at visible support after an extended decline is a pattern, while a tweezer in the middle of a range is noise. And forgetting that the pattern is short-term by nature: it points to a bounce, not a reversal of the larger trend.
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