tweezer bottom candlestick

 A Tweezer Bottom is a two-candle bullish reversal pattern appearing at the end of a downtrend, signaling that selling pressure is exhausted. It consists of two consecutive candles with nearly identical lows, indicating strong support and a potential trend reversal upward. The first candle is bearish, while the second is often bullish, with, or without, wicks matching at the same low. 

Key Characteristics and Identification:

• Trend: Occurs during a, or at the end of a, downward trend.
• Structure: Two consecutive candles with almost identical lows.
• Candles: The first is usually a long bearish (red/black) candle. The second is a bullish (green/white) candle that fails to push lower than the first.
• Significance: Sellers cannot push the price lower, suggesting a shift in momentum from sellers to buyers. 

Trading the Tweezer Bottom:

• Confirmation: A third, bullish candle is often used to confirm the reversal.
• Entry: Traders may enter a long position (buy) after the second candle closes or once the high of the pattern is broken.
• Stop-loss: Placed below the identical lows of the two candles.
• Context: Most effective when it forms at established support levels. 

Psychology:
The first day's, or candle's, aggressive selling pushes prices down. On the second day, sellers try again but are unable to move the price below the previous day's low, indicating strong, immediate support and a likely rebound.