Chart Pattern-based Systems for Binary Option Trading: the Tweezer


Chart Pattern-based Systems for Binary Option Trading: the Tweezer

Due to the nature of binary option trading, those trading without a tested and proven system never really stand a chance to generate long-term, consistent profits. Sure, the short-term variance may reward some of these gamblers every now and then, but because over the long-haul their mathematical expectation is negative, they’re doomed nonetheless. The bottom line: the use of a trading system is not optional. It’s a must. Trading systems are made up of several different components, and one of these could well be the Tweezer, a strategy based on a candlestick pattern known as the tweezer. As any chart-pattern-based trading system for binary options, the Tweezer comes with advantages and vulnerabilities, a major one of which is the relatively difficult nature of pattern-identification. Fortunately, in the case of the tweezer, there are a few ways to defeat the problems tied to pattern-identification – and I will cover those at the end of the article.

For a less hands-on approach to trading, try an auto trading binary option system. Forget about greed and disappointment. Don’t let such emotions negatively affect your trading performance.

Before all else though, we need to define the Tweezer pattern, and take a look at what it’s supposed to herald – after all, that’s what the system is based on.

There are two tweezer pattern variants: the tweezer top and the tweezer bottom. They both predict a trend-reversal: the tweezer top signals the end of a previously dominant bullish trend, and its reversal into a bearish one. The tweezer bottom on the other hand means that a bearish trend is about to experience a bullish reversal.

The tweezer top is made up of two candlesticks. The Day 1 candlestick is a bullish one, featuring a short wick under its body. The Day 2 candlestick is a bearish one, with a longer body than the Day 1 candle, but with its opening at the same level as the closing price of the Day 1 candle. The significance of the pattern should be obvious from this description: while the Day 1 candle is a continuation of the previous trend, the day two one sees sellers flood the market, destroying all the Day 1 gains and then some, thusly creating ripe conditions for a consistent trend-reversal.

The tweezer bottom is made up of two candles as well, and it is the upside-down mirror image of the tweezer top. Its Day 1 candlestick is a bearish one, with a wick above it. The Day 2 candlestick on the other hand is a bullish one, it’s longer than the Day 1 candle and its opening is on the same level as the closing price of the Day 1 candle. With that in mind, it’s easy to see how the Day 1 candle represents the continuation of the previous trend, at the end of which buyers flood the market, erasing all its losses and then some.

Now that you know and understand how the tweezer patterns develop, it’s easy to see how they can be used for the trading of the Call/Put contract, and – with a bit of tweaking – the Touch/No Touch contract as well.

Tweezer top

👉 ***Do you want to earn a side income with a stable crypto investment platform that generates sustainable monthly yields? Get this: You can now make a steady profit margins thanks to a new innovative way of investing in crypto. YieldNodes is the answer you need to start making a decent profit with cryptocurrency investment whether you are a beginner or professional in the crypto space. A multi-tiered node rental program is what Yield nodes is bringing to the table. Master-noding is the avant-garde of generating high ROI thanks to the ingenious of Stefan Hoermann and his team. With master-noding, you invest and let the platform do the rest for you. What is master-noding? It is not TRADING. It’s a new way of generating revenue by providing technology that relies on a proof of stake approach. Yieldnodes operates these crypto master-nodes and optimizes complex strategies to ensure members earn a profit. Yield Nodes will prioritize your security by providing accurate investment options. Members get protection from external losses or unforeseen changes in market conditions. This is not in any way a get rich quick scheme; once you deposit funds; you have to wait for the yields to mature. Yieldnodes is providing a proven, innovative, and secure way of making high returns on your investment with crypto master-noding.  With just a minimum deposit of €500, you are good to go! With a minimum contract duration of four months, it gives users a chance to fully experience master-noding. By joining Yieldnodes, you stand a chance of making 5 to 15% every month.  If you are still wondering whether this is a safe option, you can cancel the contract at any given time. For those who want to join and upgrade their investment strategy, Yield Nodes is the solution.

Click Here To Sign up with Yieldnodes Today

PS: YieldNodes is 100% Verified and Recommended by


To keep things brief, we’ll only consider the tweezer top for trading purposes. Once you understand this, you’ll easily be able to transpose the process to the tweezer bottom through analogy.

First of all: with the tweezer top, only the Put component of the Put/Call contract can be traded (the reasons are obvious once you take a look at the attached illustration). Likewise, with the tweezer bottom, only the Call component can be traded.

Placing the Put trade is as simple as 1-2-3. Once the tweezer top pattern is spotted, place the Put trade right at the opening of the next candlestick. As you probably know, when it comes to expiry, one has to consider the time-frame used for the analysis. If you’re using an hourly chart for analysis, set the expiry on the Put trade to 4 hours.

Now then, for the Touch/No Touch trade, we’ll have to trace a horizontal line touching the top of the tweezer top candlestick pattern. Everything above this line falls into the No Touch zone, while everything below it belongs in the Touch zone. To make sure your trade will end up in profit, set the strike price for the No Touch trade some 30 pips above the said horizontal line. For the Touch trade, we’ll go 40 pips below the said line.

The expiry on the No Touch trade should be set to 2 hours (provided you’re using a 1-hour chart for analysis) and 6-8 hours for the  Touch trade.

While the theory is indeed simple enough for this system, in practice, actually spotting the tweezer top (or bottom) can be quite challenging. Fortunately, one can use additional tools to confirm the likely presence of a trend-reversal: the support and resistance levels are extremely handy in this respect, as are indicators such as the Oversold/Overbought stochastic oscillator. Using a combination of these three tools, one can refine his tweezer system to a point where it pretty much guarantees a long-term EV+.


We’d love to keep you updated with our latest news and offers 😎

We respect your privacy. Read our privacy policy for more info.

One Reply to “Chart Pattern-based Systems for Binary Option Trading: the Tweezer”

  1. This is the binary options tool that I really like. Absolutely excellent and one that I will continue to use as guidance for my trading selection. This has also taught me the valuable less in managing stop loss and setting an adequate margin calm in case of over indulgence on spread patterns.

Leave a Reply

Your email address will not be published. Required fields are marked *


Follow Us will not be liable for any damages incurred due to the usage of any information displayed on this website. The information and trading guides found on the website constitute the authors’ opinion only. Trading Forex, Binary options and Cryptocurrencies involve high-risk and are not suitable for all investors. Online trading in general, may not be legal in your jurisdiction. It’s visitors’ responsibility to make sure these entities are legal in their jurisdiction before engaging in trading activity. All trademarks, images and logos that appear on this site are copyrights of their respective owners and have been used under the Act of Fair Use.