Business, Legal & Accounting Glossary
The Stick Sandwich candlestick formation is a bullish reversal pattern with two bearish long day (or long body) candlesticks surrounding a bullish long day candlestick. The closing prices of the two outside down days must be equal.
The bullish Stick Sandwich pattern shows three days of new higher highs all the while establishing a solid support level. This suggests the bearish trend has bottomed out while each new high implies buyers are able to mount more control of the market. Those traders holding short positions would look to exit or cover their positions. Potential buyers will look for buying opportunities, and use the shared bottom as a solid support.
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This glossary post was last updated: 23rd March, 2020 | 0 Views.