Kupach Trading

Tweezer Top

BearishReversalBeginner

Two candles, the same high: buyers tried twice and hit the same ceiling.

Verdict: CautionBitcoin 4H: 59 trades, won 53%, avg trade +0.1% vs random day −0.2%. Backtest

Uptrend
Tweezer Top: textbook shape, step by step

Price is rising, and buyers are pushing for more.

step 1/7

Trade rules

DirectionShort (sell)
EntryAfter an advance, a green candle and then a red candle make the same high (within 0.1 ATR); a candle CLOSES below the pair's low within 3 candles.
Cancelled ifPrice trades above the pair's high before that close.
Target2x the pair, projected from the breakout
3 common mistakes
  • Shorting as soon as the second candle touches the high, before it turns red.
  • Placing the stop right on the shared high, where a small poke takes it out.
  • Shorting matching highs in a sideways range, with no rally before them to end.

Backtest

same rules every time · equal size · no fees · method
MarketTradesWonAvg tradeRandom day
Bitcoin · 4H · 2017-20265953%+0.11%−0.19%
US large caps (50) · 1D · 2016-202659744%−0.54%−0.51%

Verdict: CautionBeat a random entry in some markets, not in others.

pattern +6.4%random −11%
Bitcoin 4H: pattern +6.4% vs random day −11% over 59 trades
pattern −322%random −302%
US large caps (50) 1D: pattern −322% vs random day −302% over 597 trades

Real examples

Bitcoin · 4H

Breakout Oct 6, 2020, exit Oct 6, 2020 (target)+1.18%
Same highPair lowUptrend10,374 · Oct 2, 2020Tweezer top10,800 · Oct 6, 2020Confirmed
Bitcoin 4H, real candles from Oct 2, 2020

GE · 1D

Breakout Jul 5, 2019, exit Jul 8, 2019 (target)+3.24%
Same highPair lowUptrend45.60 · May 29, 2019Tweezer top53.43 · Jul 2, 2019Confirmed
GE 1D, real candles from May 29, 2019

Exxon Mobil · 1D

trapBreakout Jun 25, 2019, exit Jul 1, 2019 (stop)−2.08%
Same highPair lowUptrend70.63 · May 31, 2019Tweezer top77.76 · Jun 24, 2019Confirmed
Exxon Mobil 1D, real candles from May 31, 2019