Tweezers, or equal-opposites, is the word of the day and was the setup for today’s reversal. Trade was actually similar to yesterday’s in that it came at the lunchtime reversal time frame and lasted the entire afternoon. Only difference was that I went long today vs. short yesterday.
Tweezers can happen at the top or the bottom of a range, but most importantly they can signify a change in direction/sentiment. It’s more effective to notice these on mid-range time frames, such as the 15-minutes, but can be used on all time frames.
Here’s what I saw and used the 3-minute charts to confirm the move…..
Note the bodies of the Red candle and the next Green candle are identical and came at a time when the move could stall at support at the right time.
I failed to catch the sell-off early so was glad to see the perfect 2nd opportunity in the afternoon. Again, the markets needed to trade to an extreme in order to take action, and this area was the first extreme defined area of support.
In other news, Gold and Silver got a beat-down today. Will discuss later, but I am going to watch this closely for follow through. No follow through could lead to a very bullish setup.
Trade the extremes always and now some Weezer (sounds like tweezers) for your entertainment.