Tweezer Top: The Mistake Most Traders Make
A tweezer top is a two-candle formation that appears when price refuses to move above the same level twice in succession.
What the pattern is
Two consecutive candles share an identical high. The first candle can be any shape; the second candle must close lower than its open. The shared high is the only required feature.
What forms it
Price has already made a clear upward move into the shared high. At that level buying interest is exhausted on the first attempt. The second attempt reaches the same price but meets immediate selling that pushes the close back down, leaving the two wicks or bodies touching at the top.
What confirms it
Three conditions must be present before the pattern is considered valid. The highs must be equal, the advance that precedes the pair must be genuine, and the second candle must finish below its opening price. Without these three elements the formation is disregarded.
How it fails
Traders commonly wait for the second candle to produce a large red body. Size is irrelevant; the matching high itself is the signal. When the second candle closes at or above its open, or when the preceding move was not a genuine advance, the setup is invalid and price often continues higher.
