[Summary]
A tweezers bottom is a pattern in which the price stops falling after hitting almost the same low twice.
If it appears in a low price range, it can be seen as a sign of a bottom formation or a rebound.
What is a tweezers sole?
A tweezers bottom is a shape in which two or more candlesticks reach almost the same low price.
This indicates that the stock has tested the lower price but has bought at the same level.
The idea is similar to a short-term double bottom.
Points to see
| Points to see | meaning |
|---|---|
| exit in the low price range | Expecting to bottom out |
| stop at the same low price | There is downside support |
| Volume increases | Possibility of repurchase |
| break above the recent high | Easy to confirm backlash |
Points to note
Even if a tweezers bottom appears, the decline may continue if the price breaks below support.
To confirm a rebound, it is important to see a rise after stopping at the same low. Just because it stops doesn't mean it's bottomed out; we'll see if the buying continues.
Summary
A tweezers bottom is a pattern used to confirm the firmness of the bottom price.
If the price appears in the low range, it will be a good source to monitor as a bottoming candidate. A break above the recent high increases confidence in the rebound.