Tweezer top
Two candles with nearly equal highs, a bullish bar then a bearish one, read as a short-term ceiling.
Tweezer top marks a bar when three things hold together: its high is within 0.5% of the previous bar's high, the previous bar closed above its open, and this bar closed below its open. It looks at only the last two bars and has no settings, so it does not check the trend before them or whether the shared high sits at a known level. At the sample's median close of 765, the 0.5% band is about $3.80, which is wide for one minute's high.
How to read it
- Markers sit on the second bar of each pair, the bearish one that closed below its open.
- The first bar closed up and the second closed down, with both highs within 0.5% of each other: sellers turned back the level buyers had just reached.
- At defaults it fires on about 17% of SPY one-minute bars, roughly 165 times a day, so one marker is weak evidence alone.
- Markers that land on a prior swing high are the textbook resistance case; the indicator does not check for that itself.
What it outputs
- Tweezer top
- Marks the bearish second bar of each pair whose highs are within 0.5% and whose first bar closed up.
When it fires
Fires on a bar closing below its open when the bar before closed above its open and the two highs are within 0.5%. Read as sellers turning back the same high buyers reached, a resistance sign. With no trend check it fires on about 17% of SPY bars: a shape, not a confirmed top.
Pitfalls
- About 17% of one-minute SPY bars fire with defaults, around 165 times a day, so unfiltered markers are mostly noise, not tops.
- The 0.5% high match cannot be tuned: the indicator has no parameters, so it cannot be tightened to pick only near-equal highs.
- No uptrend check: the code needs no rally before the pair, so markers appear in falling and flat markets as well.