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The Wait and See Patterns

While most patterns on the candlestick chart can show you possible up or down trends, certain patterns can also indicate when traders should slow or stop trading and wait for clearer market signals. These are called wait and see patterns; two of the best known are the inside range and tweezers.

Wait and See Technical Patterns

When an inside range occurs, the market movement is slight and provides little indication of its direction. For traders, this pattern usually means securing their positions and waiting until a new pattern in the market emerges.

The tweezers refers to two consecutive candlesticks that have matching highs or lows. When the consecutive candlesticks have matching highs, the pattern is called a tweezers top. When candlesticks have matching lows, the pattern is a tweezers low.

The tweezers pattern indicates that a currency is rising to a specific price, falling to a lower price, and then repeating the rise and fall. As with the inside range pattern, traders who can see a tweezers pattern in the charts should slow and even possibly stop their trading until a clearer trend in the market emerges.

Source: GFT

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