Stick Sandwich

AAA

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.

RELATED TERMS
  1. Candlestick

    A chart that displays the high, low, opening and closing prices ...
  2. Exponential Moving Average - EMA

    A type of moving average that is similar to a simple moving average, ...
  3. Crossover

    The point on a stock chart when a security and an indicator intersect. ...
  4. Bearish Harami

    A trend indicated by a large candlestick followed by a much smaller ...
  5. Moving Average Convergence Divergence ...

    A trend-following momentum indicator that shows the relationship ...
  6. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
Related Articles
  1. Western Line Vs. Candlestick Charting ...
    Charts & Patterns

    Western Line Vs. Candlestick Charting ...

  2. A Primer On The MACD
    Technical Indicators

    A Primer On The MACD

  3. Candlestick Charting: What Is It?
    Charts & Patterns

    Candlestick Charting: What Is It?

  4. Trading The MACD Divergence
    Forex Education

    Trading The MACD Divergence

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center