Here is an example of strategies of Tweezers with RSI and SMA(20), in case during the course of a decline, the appearance of the Tweezers pattern filtered by RSI at the oversold area.
One could consider buying when the next candle exceeds the high price of the pattern
Place a protective stop loss at the bottom of the pattern.
You can consider the following actions, bearing in mind that a Take-Profit strategy is heavily dependent on the trading profile of each individual.
- Close 50% of the position when price travels 100% the length of the pattern
- Close the remaining 50% when price reaches the 200% of the pattern or at
the presence of a reversal candlestick pattern above the SMA(20).
- Other combinations may be applied.