TUTORIAL
Friday's candle formed a Spinning Top. A Spinning Top is formed by a small real body with supper and lower shadows less than the length of the real body. By itself, a Spinning Top indicates a drifting market. However, this spinning top's lower shadow's low price was equal to the low price of the previous candle forming a Bullish Tweezer. A Bullish Tweezer is a trend reversal indicator.
TRADING
Trading this market "Long" based upon the Bullish Tweezer candle pattern would indicate a counter-trend trade since the major trend is downward.
Friday's candle formed a Spinning Top. A Spinning Top is formed by a small real body with supper and lower shadows less than the length of the real body. By itself, a Spinning Top indicates a drifting market. However, this spinning top's lower shadow's low price was equal to the low price of the previous candle forming a Bullish Tweezer. A Bullish Tweezer is a trend reversal indicator.
TRADING
Trading this market "Long" based upon the Bullish Tweezer candle pattern would indicate a counter-trend trade since the major trend is downward.
Comment:
Note: Since Friday's candle was a Spinning Top indicating a drifting market I would not put too much emphasis on the Bullish Tweezer reversal pattern. Since the Bulls do not have control of this market there is still a good chance this market could turn lower. To confirm a reversal upward I would want to see a confirmation candle showing the bull's in control before relying on a reversal upward.
Comment:
When a Tweezer Top is formed between a Support and Resistance I want to see some confirmation that a reversal is occurring. However, when a Tweezer Top forms at or very close to a support level confirmation of a reversal is not necessary.