Candlestick - Tweezers (Kenuki)

Tweezers ( Kenuki )

The Tweezers candlesticks formation is a consecutive candlesticks have matching highs or lows. Tweezers candlesticks can be both in bullish, bearish or mixed. There are two type of Tweezers candlesticks :

(i) Tweezers Top

Tweezers top generated when the highs of the consecutive candlesticks is match. Tweezers top is occurs in the rising market. The "Wait & See" signal changes to reversal when these criteria are met :

the formation occurs after an extended move.
additional information is provided by the second tweezers.

A strong case for an immediate or soon-to-occur bearish reversal shown when both tweezers are white and the second one is unable to make higher high. Another bearish reversal signal is shown when the second tweezers is a doji, and occurs at the top of the up trend. When the second tweezers is a black opening marubozu that open at the first day's high and close below the midrange of the prior day's white candlestick. This also signals a bearish reversal.

(ii) Tweezers Bottom

Tweezers bottom appears when two consecutive candlesticks of the same or opposite directions (white/black) have similar lows. The "Wait & See" formation may forecast a bullish reversal when it appears at extreme lows, and depending on the direction and the price structure of the second tweezers.

Bullish reversal signal is trigger when tweezers bottom formed by two black candlestick, the second candlestick is opens within the range of the first day's body, a rather undecided move. Despite the attempt to break out further on the down side, the second candlestick fails at the same low. This pattern indicates that the trend is reaching the bottom.

If tweezers bottom is occurs at the bottom of a down trend, and the second day candlestick is a doji line, this pattern signals a bullish reversal.

Tweezers bottom composed of the first day's black candlestick followed by a white candlestick which opens at the previous low and closes about midrange of the first day's body. This pattern also signals a bullish reversal.

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