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What is a bullish stick sandwich candlestick?
What is a bullish stick sandwich candlestick?
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Type: Reversal
Relevance: Bullish
Prior Trend: Bearish
Reliability: Medium
Confirmation: Suggested
No. of Sticks: 3
Definition: Get the highest rated stock from Americanbulls for this pattern >>>
The Bullish Stick Sandwich Pattern is characterized by consecutive higher opens for three days, but results in an eventual close equal to the first day's close. It may warn that prices are now finding a support price. We may then see a reversal from this support level.
Recognition Criteria:
1. Market is characterized by downtrend.
2. We see a Black Closing Marubozu in the first day.
3. Then we see a white candlestick, which is above the close of the first day.
4. Then we again see a Black Closing Marubozu characterized with a close equal to the close of the first day.
Explanation:
In the Bullish Stick Sandwich Pattern, there is a downtrend going on. Then prices open higher on the next trading day and they reach to higher levels all day, closing at or near the high. This bullish act suggests that the previous downtrend may now reverse implying that the shorts need protection. The next day, prices open at a higher level leading some shorts to cover their positions initially but then the prices start moving lower to close at the same price as two days ago. This pattern shows that the market is finding a support level and now the trend may reverse from this support level.
Source(s)
Important Factors:
A confirmation on the fourth day is required to be sure that the downtrend is reversed. Confirmation may be in the form of a white candlestick, a large gap up or a higher close on the fourth day.
http://www.candlesticker.com/Cs54.asp
Answers
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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. Source(s): http://www.hotcandlestick.com/directory/Bullish% 20Stick%20Sandwich.htm |
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The Bullish Stick Sandwich Pattern is characterized by consecutive higher opens for three days, but results in an eventual close equal to the first day's close. It may warn that prices are now finding a support price. We may then see a reversal from this support level. Source(s): http://www.candlesticker.com/Cs54.asp |
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The Bullish Stick Sandwich pattern shows three days that establish a solid support level, while each new day forms higher highs. |
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Day-one is a red day that continues the established trend to a new low Source(s): fxwords.com |
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The Bullish Stick Sandwich Pattern is a bullish reversal pattern that occurs after a significant down trend. It is characterized by consecutive higher opens for three days, but results in an eventual close equal to the first day's close. It may warn that prices are now finding a support price and signals a possible reversal from this support level. |
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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. |
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