Stick Sandwich Definition
The stick sandwich pattern can occur in both bull and bear markets. The stick sandwich pattern consists of three candlesticks, where one candlestick has an opposite colored candlestick on both sides. The closing prices of the two candlesticks that surround the opposite colored candlestick must be same.
Bearish Stick Sandwich Charting Example
The bearish stick sandwich is a rare candlestick pattern. The first candlestick in the formation is a long white (green) candlestick that closes near its high. The second candlestick is a black (red) candlestick that gaps down from the previous close and closes below the previous day’s open. The third candlestick is a white (green) candlestick that completely engulfs the second candlestick and has the same closing price as the first candlestick. Traders should wait for the low of the third candlestick to be broken prior to taking any short positions.
Bearish Stick Sandwich
Bullish Stick Sandwich Charting Example
The bullish stick sandwich is a rare candlestick pattern. The first candlestick in the formation is a long black (red) candlestick that closes near its low. The second candlestick is a white (green) candlestick that gaps up from the previous close and closes above the previous day’s open. The third candlestick is a black (red) candlestick that completely engulfs the second candlestick and has the same closing price as the first candlestick. Traders should wait for the high of the third candlestick to be broken in the bullish stick sandwich formation prior to taking any long positions.
Bullish Stick Sandwich
