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.

BREAKING DOWN '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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RELATED FAQS
  1. How do I build a profitable strategy when spotting a Stick Sandwich pattern?

    Though the stick sandwich is not the most reliable candlestick pattern, it can still be used to create profitable trade strategy ... Read Full Answer >>
  2. How are Stick Sandwich patterns interpreted by analysts and traders?

    Comprised of three candles, the stick sandwich candlestick pattern is so named because the middle candle is always the opposite ... Read Full Answer >>
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    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  4. How are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
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    Common oscillator readings to consider making a buy or sale are below 20 or above 80, respectively. More aggressive investors ... Read Full Answer >>
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    The most commonly used Fibonacci retracement alert levels are at 38.2% and 61.8%. A 50% retracement level is also commonly ... Read Full Answer >>

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