Tweezer Top Strategy

The Tweezer Top mirrors the bottom version but appears after an advance. Two candles share nearly the same high, showing that buyers could not push beyond a certain level.

Testing indicates an average annual return of about 187%. It performs best in the stocks market.

The strategy opens a short once the second candle confirms the ceiling, expecting a pullback as bullish momentum stalls.

A tight stop above the twin highs keeps risk in check and the trade exits if price climbs back above that resistance.

Details

• Entry Criteria: pattern match
• Long/Short: Both
• Exit Criteria: stop-loss or opposite signal
• Stops: Yes, percent based
• Default Values:
  • CandleType = 15 minute
  • StopLoss = 2%
• Filters:
  • Category: Pattern
  • Direction: Both
  • Indicators: Candlestick
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk level: Medium