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Tweezer Top Pattern – Double Top Candles

The Tweezer Top is a two-candle pattern with equal highs, signaling a potential trend reversal from bullish to bearish. This lesson teaches you how to identify and trade it easily.

Mark · Trader & Founder, Social Forex

Tweezer Top Pattern – Double Top Candles

What is the Tweezer Top Pattern?

The Tweezer Top is a bearish reversal pattern consisting of two consecutive candles with the same high price. It typically appears at the end of an uptrend and signals a potential price decline. The first candle is usually a strong bullish candle (long body), while the second candle can be bearish or small (doji) but its high does not exceed the first candle's high.

How to Identify

  • Two consecutive candles with the same high (or very close).
  • The first candle is bullish (long body, short upper wick).
  • The second candle can be bearish (short or long body) or a doji, but its high is not higher than the first.
  • Appears after a clear uptrend.

    • Here is a typical Tweezer Top diagram:

    Resistance ZoneSame HighBoth candles rejected at same high = resistance defended twice

    How to Trade

  • Enter a short trade: Once you see the Tweezer Top pattern, place a sell order right after the second candle closes. Set a stop loss just above the pattern's high.
  • Profit target: Measure the height from the high to the nearest low (e.g., the low of the prior uptrend) and set a target equal to that distance.
  • Additional confirmation: For safety, wait for a third bearish candle to confirm before entering.

    • Real Example

    Suppose stock ABC rises from 100 to 120. On day one, price surges to 120 and closes near the high. On day two, price opens near 120, fails to break above 120, and closes at 115. This is a Tweezer Top. You could sell with a stop loss at 121, target 110 (height of 20 points from 100 to 120).

    Common Mistakes

  • Confusing with continuation patterns: If two candles have equal highs but the second candle still rises and closes higher, it may be a continuation pattern, not a reversal.
  • Trading without a clear uptrend: Tweezer Top is only meaningful after an uptrend.
  • Not using a stop loss: Always set a stop loss to manage risk.

    • Content is for reference only, not investment advice. Forex trading carries high risk.

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