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55 Cards in this Set
- Front
- Back
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The candle pattern known as TWEEZERS consists of what?
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2 or more candle lines with MATCHING HIGHS or LOWS
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When does a (Tweezer's Bottom) T.B take place?
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In a declining market, when 2 successive lows are equal
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When does a (Tweezer's Top) T.T occur?
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In a rising market when 2 or more consecutive highs match each other, thus giving the image of the 2 prongs of a tweezers
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Since Tweezer's _____, the connotation is that the market is getting ______ed.
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PINCH
PINCHED |
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Ideally, the Tweezer's pattern should develop with the 1st session incorporating what?
How about in a declining vs. risking market? |
a LONG REAL BODY
In a declining market, this would probably be a long black candlestick; in a risking market this would finalize as a long white candlestick |
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Why is the 2nd session of a TWeezer's pattern formation interesting?
It's best - but not absolutely necessary when this session forms what? |
because it has many variations
SMALL REAL BODY |
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Ideal T.Top might ideally finish with what 3 candles?
What do they all have in common? |
Hanging Man, Shooting Star, Dark Cloud Cover
Small RB's |
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Ideal T.Bottom might ideally finish with what 3 candles?
What do they all have in common? |
Hammer, Harami Cross, Piercing pattern
Small RB's |
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In a T.T, since the 2nd candle can't make a higher high than the 1st candle, the T.Tops adds the outlook of what?
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SLAKENING of Demand
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With the 1st long RB and the 2nd smaller RB integrating 2 consecutive highs, what does the T.Tops tell us?
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That the bullish force of the long white candle began to dissipate with the small RB of the 2nd candle.
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The T.B begins with a long RB carrying the happy bears to victory. But the next candle, with the same highs and lows and often completed with a small RB, switches what to what? What does this tell us?
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VICTORY to UNCERTAINTY
As buying bulls start nibbling, the bears failure to press the 2nd session to a lower low intensifies their angst. |
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In a T.B, naturally, what helps confirm the potential reversal?
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NEXT CANDLE
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When do we assign little importance to T.T/B? Unless WHAT are present? In and of themselves, are they important?
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Little importance to 2 consecutive highs or lows shown on a DAILY or INTRADAY chart unless OTHER DEFINING signals are present. In and of themselves, they are NOT noteworthy.
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As opposed to ______, T.T/B's that appear on ______ potentially indicate important reversal signals
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SHORTER TF's of intraday and daily charts
WEEKLY and MONTHLY |
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3 Black Crows (3BC's) appears only at what price levels? Or in the context of what?
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HIGH price levels
Context of MATURE UPTREND. |
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3BC's consists of what?
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3 black candles that should close AT or NEAR their LOWS
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In 3BC's, where does the 1st candle appear?
Where should each session's open ideally take place? |
Near the TOP of an UPTREND that's starting to ROLL OVER or MOVE DOWN.
WITHIN the PREVIOUS Sessions RB |
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The 3BC's pattern sense a useful signal for who?
Explain why. |
Long term trades and investors.
By the time the pattern concludes with the completion of the 3rd black candle, it's already obvious that the market has fallen significantly from its recent high. |
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You're holding a long term position and a 3BC's pattern appeared on a weekly chart, in conjunction with other indicators, it might warn you to what?
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Take partial or all profits
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3WS's appear as what?
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3 long white candles exhibiting consecutively higher prices
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3WS's is what type of pattern?
As such, each candle should close where? |
CONTINUATION
AT or NEAR its HIGH |
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In 3WS's the lines form what type of RISE?
W/each candle opening where? |
ORDERLY, ONGOING
Each candle opening: WITHIN or CLOSE to the PRIOR candle's RB. |
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For the 3WS's pattern, is trend critical? Why?
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NO. The 3WS's may begin an upward climb out of a downward reversal or may emerge during a rally.
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If the 3WS's may begin an upward climb out of a downward reversal or may emerge during a rally, in these instances, what does the pattern suggest?
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POSITIVE MOMENTUM ahead
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What is the opposite of 3WS's?
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3BC's
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What is the opposite of 3BC's?
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3WS
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Although candles display a healthy rise in the market, they do not necessarily give you a buy signal: explain this caveat regarding the 3WS pattern
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When the candles move to an extended price range, be careful of entering long positions. Overbought markets usually consolidate or retrace after prolonged price rises. The proper long entry may appear after a pullback to price support
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When candles move to an extended price range, why should one be careful of entering long positions?
When may the proper long entry appear? |
Cuz overbought markets usually consolidate or retrace after prolonged price rises.
After a pullback to price support. |
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One condition T.T's must display is what?
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MATCHING HIGHS
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Ideally, in a mature uptrend, T.T's consists of what?
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LONG WHITE CANDLE FOLLOWED by a SMALLER RB that has the same HIGH
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A T.B that forms at a potential culmination of a decline could form as a what pattern? What what?
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HARAMI PATTERN
EQUAL LOWS on BOTH CANDLES |
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A T.B that forms at a potential culminatin of a decline could form as a harami pattern with equal lows on both candle lines. Explain the formation and price action and whether or not the pattern can be designated a TB
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1st candle in a BULLISH HARAMI is a lONG WHITE RB that appears in a decline. The 2nd smaller real body that resides within the opening and closing price range of the 1st candle. As long as BOTH C's have the SAME LOW -whether formed by shadows or real bodies, the pattern can be designed a TB
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3WS presage more strength if they appear where?
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After a period of stable prices or at a low price area
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Why could you call the 3WS the "good news, bad news" pattern?
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Because a market that rises for 3 consecutive days may be in danger of becoming overbought
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Ideally, the RB's that make up the 3WS pattern should move in what?
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AN ORDERLY RISE with CONSECUTIVELY HIGHER CLOSES
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A condition for the 3WS pattern is:
a. they appear in a sharp downtrend b. they emerge in a box range c. they develop in an uptrend d. none of the above |
D! Trend is not important for 3WS. The major condition for the 3WS is that there are 3 white candles each with a higher close and that each session should close with a higher price than the previous candle
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Is trend important for the 3WS?
What is the major condition for the 3WS? |
NO!
There are 3 white candles each with a higher close and that each session should close with a higher price than the previous candle |
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The signal generated by 3BC's is BEST utilized by who? As opposed to who?
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long term traders and investors!
Not day traders, market makers or NYSE Specialists |
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3BC's signify a bearish market environment when they appear as what? Consequently, this pattern must come during a what?
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TOP REVERSAL
MUST COME during an UPTREND |
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One condition for 3BC's pattern is:
a. 3 black candles b. 3 black spinning tops c. 3 bullish belt holds d. 3 dark cloud covers in a row |
A! 3BC's pattern consists of 3 FALLING candles, ALL with Black RB's
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On a weekly chart, a T.T's shows that:
a. this week's high is the same as last weeks' high b.the top of the RB's have the same lows C.The top of the RB's have the same highs D.None of the above |
A!
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On a weekly chart showing a T.Top, what does this show?
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This week's high would be the same as last week's high
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The Tweezers may be comprised of RB's, shadows and/or doji. (T/F)
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TRUE
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Tweezers may be comprised of what?
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RB's, Shadows and/or doji
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Tweezers occurs on what type of sessions?
Yet, they are not as vital a reversal signal on what type of chart? |
CONSECUTIVE
DAILY or intraday |
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When are Tweezers not as vital a reversal signal?
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When on a daily or intraday cahrt
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When do Tweezers take on extra importance/
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When they contain other Bearish (for a top reversal), or
Bullish (for a bottom reversal) candlestick signals |
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For those who utilize ________, T.T/B's on _____ and _____ charts may represent significant reversal patterns
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Longer time perspectives.
Weekly and monthly |
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For those who utilize long term perspectives, what could be a base for a rally?
However, for the short term trader, what is less likely to hold as a base/ |
a LOW made last week, or month, that successfully tested
A LOW made yesterday, that is successfully tested today, however, is LESS LIKELY to hold for a short term trader |
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A low made last week or month vs. a low made yesterday, explain the trading implications for the longer term vs. shorter term trader
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Last week or month, LOW that successfully tested could be a base for a rally for the Long term trader. But a low made yesterday that is successfully tested today, however is less likely to hold as a base, as the time frame is shorter
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A low made last week or month, that successfully tested could be what?
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BASE for potential rally (longer term investor-looking at weekly or monthly charts)
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A low made yesterday that is successfully tested today, a strong base for a rally?
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NO. Only if the low was on a weekly or monthly TF. On DAILY, however, it's LESS LIKELY to hold as a base.
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Why is a low made yesterday that is successfully tested today less likely to hold a base as a low made last week or month?
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Cuz TF is SHORTER - shorter TF's less likely to hold as a base
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What is the criteria for T.T?
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Must be formed of 2 consecutive candle lines that share equal heights
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What does the IDEAL T.T consist of?
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Consists of a long white candle followed by a smaller RB that has the SAME HIGH
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