Candles patterns are a valuable way of identifying the current conditions on the market. You will find that many variations of candle patterns exist. The one called the railway tracks or tweezers is especially useful for the traders who are keen on price action and long-lasting positions.
Here, I want to present Tweezers Top and Tweezers Bottom patterns so you can use it during trading on the Olymp Trade platform.
Presentation of the railway tracks candlesticks pattern
Whenever this pattern appears, three conditions had to occur.
Condition number 1 is that the pattern consists of two candles. Number 2 is that both candles are of similar height so they resemble railway tracks. Look at the picture above. And the condition number 3 is the candles cannot be of the same color. If one is orange, the other has to be green.
What is great about Tweezers Top and Bottom patterns is that they are pretty easy to recognize. You will usually find them when the trend was developing for a time and now is nearly exhausted. Once you notice the discussed pattern you can be pretty sure the reversal of the trend is going to happen.
Using Tweezers Top and Tweezers Bottom patterns on the Olymp Trade platform
When you take a look at the above chart you will spot the Tweezers Top pattern. It has formed at the top of the uptrend signaling the upcoming reversal. The moment the bearish candle begins to develop, you should enter a short position.
Now take a look at the chart above. You will see there a pair of candles at the bottom of the downward trend. Well, they are not the same length, nor even close. But look at their lows. They are at the same level and this makes them potential rail pattern candidates. They give you a hint that the price is going to rise.
Pros and Cons👍👎
- Recognizing Tweezers Top and Bottom patterns can provide valuable insight into potential trend reversals.
- They are relatively simple to understand and use, even for beginner traders.
- These patterns can be used in various time frames and on any trading platform.
- Like all trading patterns, Tweezers Top and Bottom aren’t 100% accurate and should be used in conjunction with other trading tools and indicators.
- They require a clear trend to be effectively identified, which may not always be present.
|Forms at the top of an uptrend, signaling a potential downward reversal.
|Forms at the bottom of a downtrend, indicating a possible upward reversal.
How to make the best possible use of Tweezers Top and Tweezers Bottom patterns
The railway tracks pattern works well when the trends are clear on the market. Additionally, it is better to enter a position for a longer time because it sometimes takes a while for a trend to fully develop. If you are into financial derivatives at Olymp Trade, I would say to trade 15-minute positions or longer.
As you can see Tweezers Top and Tweezers Bottom patterns are not that difficult to spot and use. However, I always recommend practising on a demo account first. Once you get an idea of how it works, move into the real Olymp Trade account. And remember, I would love to hear how you like trading with this pattern. Use the comments section below to share your thoughts.
All the best!
- Q: What are the Tweezers Top and Bottom patterns?
A: These are candlestick patterns that indicate potential trend reversals. They are called “tweezers” because they consist of two candles of similar heights, resembling a pair of tweezers.
- Q: Where can I use these patterns?
A: These patterns can be used on any trading platform that allows for candlestick charting, including Olymp Trade.
- Q: What should I do when I spot a Tweezers Top or Bottom pattern?
A: These patterns suggest a potential trend reversal. However, it’s crucial to consider other factors and indicators before making a trading decision.
- Q: Are these patterns always accurate?
A: Like all trading patterns, Tweezers Top and Bottom aren’t 100% accurate. They should be used in conjunction with other trading tools and indicators.
- Q: How can I practice using these patterns?
A: It’s advisable to practice on a demo account before implementing new strategies in live trading.
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