Bullish Stick Sandwich

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The bullish Stick Sandwich often comes during the end of a downward move and predicts the start up of a bullish move. There are three different candlesticks for this pattern.

The first is a large down day. The next day the stock should rally above the high of the first candlestick. The third and final day in the pattern the stock should engulf the third. It should be a large down day. However this day should not go past the close of the first day.

Why is the Bullish Stick Sandwich pattern bullish? When the stock is unable to make any lower advances after the first day it signals that it may have found a bottom and could start bouncing off of it.