Bullish Tweezer Bottom
A tweezer (kenuki) bottom occurs when the lows of two or more candlesticks are equal in a series of candlesticks.
The lows of these days can also coincide with the open or close. These lows will later become support.
The tweezer bottom has a higher odds of success if it occurs in the context of a larger bull market.
The term tweezer sounds small, but it is not the size of the candlestick, but the fact the candlesticks have the same lows.
How to identify
- 1st day consists of a long red body candle.
- 2nd day consists of a short body candle that has a low equal to the prior day’s low.
The price action has trended downward then 2 consecutive days of equal lows signal support.
This could signal a short term bottom is forming.