Stick Sandwich

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DEFINITION of 'Stick Sandwich'

A technical trading pattern in which three candlesticks form what appears to be a sandwich on the trader's screen. Stick sandwiches will have the middle candlestick oppositely colored of the candlesticks on either side of it, both of which will have a larger trading range than the middle candlestick. Stick sandwich patterns can occur in both bearish and bullish indications.

INVESTOPEDIA EXPLAINS 'Stick Sandwich'

In a bearish stick sandwich, the outside candlesticks will be long green candlesticks, while the inside candlestick will be shorter and red, and will be completely engulfed by the outside sticks. A bullish stick sandwich will look pretty much the same but with the opposite color and trading patterns as the bearish sandwich. Traders typically will take cues from the closing prices of the third candlestick when deciding to take bullish or bearish positions.

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