A stick sandwich is a candlestick pattern that consists of three candles. The central candlestick will be colored in the opposite way from the candlesticks on either side of it, and each will have a wider trade range than the middle candlestick. Both bullish and bearish indicators can have stick sandwich formations.
The outside candlesticks in a bearish stick sandwich will be lengthy, green, and swallowed by the outside sticks. While the interior candlesticks will be red and short.
Although it has the opposite hue and trading patterns from the bearish sandwich, the bullish will essentially have the same appearance. When making decisions about whether to take bearish or bullish positions, traders usually look to the closing market prices of the third candlestick for guidance.
The broad section of the candlestick is referred to as the real body. The price range between the opening and closing prices of that trading day is represented by this real body. The real body is below the open when it is filled in or dark. The close is higher than the open when the real body seems empty.
How to Identify a Stick Sandwich
To identify the candlestick pattern, you have to note the following;
- There should be three candlestick pattern,
- The candles on the other side of the central candle must be colored differently from it,
- Stick Sandwiches that are bullish will run red-green-red or black-white-black,
- Stick Sandwiches that are bearish will run green-red-green or white-black-white,
- To be taller than the central candle, the candles on both sides must have a larger trade range than the candle in the middle,
- A downtrend is required for the bullish Stick Sandwich to occur, while an uptrend is required for the bearish.
